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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.8908, 0.8861, 0.8830
- Resistance: 0.8957, 0.9000, 0.9036
The US Dollar turned lower against the Swiss Franc as expected after showing back-to-back Shooting Star candlesticks below chart resistance. Sellers are testing support at 0.8908, the 38.2% Fibonacci retracement. A daily close below this barrier targets the 0.8861-69 area marked by the 50% level and the April 22 high. Alternatively, a turn above the 23.6% Fibat 0.8957 clears opens the door for a challenge the 0.90 figure, followed by the June 5 high at 0.9036.
Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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