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- USD/CHF Technical Strategy: Flat
- Support: 0.8723 (50% Fib exp.), 0.8669 (61.8% Fib exp.)
- Resistance: 0.8777-0.8804 (38.2% Fib exp., Triangle top/bottom)
The US Dollar declined against the Swiss Franc as expected after prices completed a bearish Evening Star candlestick pattern. Initial support is now at 0.8723, the 50% Fibonacci expansion, with a daily close below that targeting the 61.8% level at 0.8669. Near-term resistance is clustered in the 0.8777-0.8804 area, marked by the 38.2% Fib as well as the upper and lower boundaries of a Triangle chart formation carved out since mid-March and completed earlier this week.
On one hand, completion of the Triangle formation speaks to down trend continuation. On the other, the appearance of a bullish Piercing Line candlestick pattern at support hints a rebound may be ahead. We will opt to stand aside for now, waiting for positioning to offer greater clarity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com