U.S. Markets open in 4 hrs 25 mins

USD/CHF Technical Analysis – Selloff Slows Below 0.88 Mark

Ilya Spivak

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support: 0.8723 (50% Fib exp.), 0.8669 (61.8% Fib exp.)
  • Resistance:0.8777 (38.2% Fib exp), 0.8844 (23.6% Fib exp.)

The US Dollar is attempting to find its feet after five consecutive days of losses against the Swiss Franc in the aftermath of an expected reversal near 0.89. Prices are retesting support-turned resistance at 0.8777, the 38.2%Fibonacci expansion, with a break above that targeting the 23.6% expansion at 0.8844. Near-term support is at 0.8723, the 50% level. A breach below this boundary aims for the 61.8% Fib at 0.8669.

USD/CHF lost nearly 2 percent last week. Most analogous episodes of comparable magnitude in the past year have been followed by significant recoveries. While this certainly doesn’t guarantee a lasting upswing and the chart does not show a discrete reversal signal, we are nonetheless leery to chase the pair downward at this point.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_usd-chf_body_Picture_11.png, USD/CHF Technical Analysis – Selloff Slows Below 0.88 Mark

Daily Chart - Created Using FXCM Marketscope 2.0

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

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.