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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8934, 0.8904, 0.8861
- Resistance: 0.8983-94, 0.9022-36, 0.9061
The US Dollar ha paused at chart resistance having rallied to a one-month high against the Swiss Franc. A daily close above resistance in the 0.8983-94 area, marked by the 38.2% Fibonacci expansion and the June 13 close, exposes the 0.9022-36 region (50% level, June 5 high). Alternatively, a turn back below the 23.6% Fib at 0.8934 opens the door for a challenge of the 14.6% expansion at 0.8904.
Risk/reward considerations argue against entering long with prices trading in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. 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
original source
