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- USD/CHF Technical Strategy: Flat
- Support: 0.8697 (Wedge bottom)
- Resistance: 0.8806 (23.6% Fib ret., Wedge top), 0.8873 (38.2% Fib ret.)
The Swiss Franc may be on the verge of a turn lower against the US Dollar as USD/CHF price action traces out a falling Wedge chart formation. The pattern speaks to fading downside momentum and may precede a reversal upward. Breaking resistance at 0.8806, the intersection of the Wedge top and the 23.6% Fibonacci retracement initially exposes the 38.2% level at 0.8873. Wedge support is now at 0.8697.
Confirmation of a Wedge setup requires the pattern’s completion on a daily close above its upper boundary. With that in mind, we will continue to stand aside for now, waiting for preliminary cues to mature into an actionable long trade opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com