Monday, June 2, 2014

USD/CHF Technical Analysis ? Testing 7-Month Resistance Line




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Talking Points:



  • USD/CHF Technical Strategy: Flat


  • Support:0.8946 (23.6% Fib ret.), 0.8852 (14.6% Fib ret.)


  • Resistance: 0.8981 (trend line), 0.9100 (38.2% Fib ret.)


The US Dollar advanced against the Swiss Franc as expected after forming a bullish Piercing Line candlestick pattern. The pair continues to test resistance at a falling trend line set from November 2013 (now at 0.8981), with a break higher exposing the 38.2% Fibonacci retracement at 0.9100. Support is at 0.8946, the 23.6% level. A turn below that on a daily closing basis opens the door for a test of the 14.6% Fib at 0.8852.



Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a confirmed bearish reversal signal warns against taking up the short side. Wewill remain flat for now.



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USD/CHF Technical Analysis – Testing 7-Month Resistance Line


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/CHF Technical Analysis ? Testing 7-Month Resistance Line

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