Forex: USD/CHF Technical Analysis – Ready to Turn Higher?
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Talking Points:
USD/CHF Technical Strategy: Flat
Support: 0.8776-50 (Feb 28 low, 38.2% Fib exp.), 0.8705 (50% Fib exp.)
Resistance: 0.8855 (trend line)
The US Dollar may be preparing to launch a recovery against the Swiss Franc as prices show a Doji candle at support marked by the February 28 low at 0.8776. This barrier is reinforced by the 38.2% Fibonacci expansion at 0.8750. Positive RSI divergence bolsters the case for an upside scenario. A bounce sees near-term resistance is at a falling trend line set from late January, now at 0.8855. Alternatively, a break below 0.8750 eyes the 50% level at 0.8705.
A Doji candle on its own points to indecision but falls short of offering a concrete upward reversal signal. With that in mind, we will stand side for now until an actionable setup presents.
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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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