Thursday, February 27, 2014

Forex: USD/CHF Technical Analysis ? Key Trend Line in Focus




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Talking Points:



  • USD/CHF Technical Strategy: Flat


  • Support: 0.8848 (Dec’13 closing bottom), 0.8798 (Dec 27 low)


  • Resistance: 0.8921 (23.6% Fib ret.), 0.8966 (38.2% Fib ret.)


Prices continue to range above support at 0.8848, the December 2013 closing bottom. Near-term resistance is at 0.8921, a barrier marked by the 23.6% Fibonacci retracement and a falling trend line set from late January. A daily close above this threshold initially exposes the 38.2% level at 0.8966. Alternatively, a reversal beneath support aims for the December 27 low at 0.8798.



Prices are too close to relevant resistance to justify a long trade on risk/reward grounds. On the other hand, a short position would necessarily presume resistance will hold up, an assumption that is baseless thus far absent a clear-cut reversal signal. As such, we remain flat.



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dailyclassics_usd-chf_body_Picture_11.png, Forex: USD/CHF Technical Analysis – Key Trend Line in Focus


Daily Chart – Created Using FXCM Marketscope 2.0



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





Forex: USD/CHF Technical Analysis ? Key Trend Line in Focus

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