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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8908-19, 0.8861-9, 0.8830
- Resistance: 0.8957, 0.9000, 0.9036
The US Dollar renewed its push higher against the Swiss Franc, moving to the highest level in three weeks. The bulls are testing resistance at 0.8957, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.90 figure. Alternatively, a turn below support in the 0.8908-19 area – marked by a broken falling trend line and the 38.2% level – exposes the 0.8861-9 zone (50% Fib, April 22 high).
Risk/reward considerations argue against entering long with prices trading squarely at resistance. On the other hand, the absence of a defined bearish reversal signal warns against taking up the short side. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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