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- USD/CHF Technical Strategy: Flat
- Support: 0.8839 (38.2% Fib exp.), 0.8802 (23.6% Fib exp.)
- Resistance: 0.8869 (50% Fib exp.), 0.8899 (61.8% Fib exp.)
The US Dollar paused to digest gains after hitting a two-week high against the Swiss Franc but positioning hints that further giants are likely ahead. A close above the 38.2%Fibonacci expansionat 0.8839 has exposed the 50% level at 0.8869, with a further push above that eyeing the 61.8% Fib at 0.8899. Alternatively, a turn downward that yields a close back below 0.8839exposes the 23.6% expansion at 0.8802.
The available trading range is too narrow to justify a trade from a risk/reward perspective given a 20-day ATR reading of 41 pips and assuming a stop-loss triggered on a daily closing basis (as is the case with our strategy). As such, we will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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