USD/CHF Technical Analysis: Two-Month Support at Risk
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Talking Points:
USD/CHF Technical Strategy: Flat
Support:0.9726, 0.9617, 0.9529
Resistance: 0.9793, 0.9902, 0.9998
The US Dollar fell the most in over two months against the Swiss Franc to test support capping losses since late June. A daily close below 0.9726 (trend line, 23.6% Fibonacci retracement) exposes the 38.2% level at 0.9617. Alternatively, a move above the 14.6% Fib at 0.9793 clears the way for a test of the August 11 high at 0.9902.
Risk/reward considerations argue against entering short with prices 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, waiting for an actionable opportunity to present itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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