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Forex: USD/CHF Technical Analysis – Direction Cues Still Absent

Ilya Spivak

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Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support: 0.8967 (trend line), 0.8902-39 (Jan 24, Feb 11 lows)
  • Resistance: 0.9024 (trend line), 0.9081 (Feb 3 high)

The Swiss Franc continues to tread water in an increasingly narrow consolidation pattern around the 0.90 figure. A break above resistance, now at 0.9024, exposes the February 3 high at 0.9081. Alternatively, a reversal below support at 0.8967 on a daily closing basis aims for swing lows at 0.8939 and 0.8902.

Risk/reward considerations argue against taking a trade at current levels as the pair treads water in the immediate vicinity of near-term support and resistance levels. We will continue to wait on the sidelines for now, looking for a clearly-defined breakout from consolidation to consider a directional bet.

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dailyclassics_usd-chf_body_Picture_11.png, Forex: USD/CHF Technical Analysis – Direction Cues Still Absent

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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