Sunday, June 1, 2014

USD/CHF Technical Analysis ? Bulls Rejected Below 0.90




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Talking Points:



  • USD/CHF Technical Strategy: Flat


  • Support:0.8921 (23.6% Fib ret.), 0.8879 (38.2% Fib ret.)


  • Resistance: 0.8983 (trend line), 0.9000


The US Dollar rose against the Swiss Franc as expected after prices put in a bullish Piercing Line candlestick pattern. Prices are testing resistance at 0.8983, marked by a trend line set from November 2013. A break above this barrier clears the way for a challenge of the 0.90 figure. Support is at 0.8321, the 23.6% Fibonacci retracement. A daily close below that eyes the 38.2% level at 0.8879.



Positioning is inconclusive for the time being. Furthermore, an inverse correlation of -0.94 between USDCHF and EURUSD (20-day percent change studies) argues against taking a trade considering we already have exposure in the latter pair. We will remain flat.



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USD/CHF Technical Analysis – Bulls Rejected Below 0.90


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/CHF Technical Analysis ? Bulls Rejected Below 0.90

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