Thursday, January 29, 2015

USD/CHF Technical Analysis: Half of SNB Drop Retraced




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Talking Points:



  • USD/CHF Technical Strategy: Flat


  • Support: 0.9040, 0.8757, 0.8582


  • Resistance: 0.9269, 0.9498, 0.9781


The US Dollar resumed its advance against the Swiss Franc after a brief pause, with buyers claiming a foothold above the 0.92 figure. A daily close above the 50% Fibonacci retracement at 0.9269 exposes the 61.8% level at 0.9498. Alternatively, a turn below the 38.2% Fib at 0.9040 opens the door for a test of the 23.6% retracement at 0.8757.



Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.



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USD/CHF Technical Analysis: Half of SNB Drop Retraced


Daily Chart – Created Using FXCM Marketscope



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





USD/CHF Technical Analysis: Half of SNB Drop Retraced

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