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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8811 (23.6% Fib exp.), 0.8781 (38.2% Fib exp.)
- Resistance: 0.8861 (Apr 22 high). 0.8900
The US Dollar may be setting up for a move lower against the Swiss Franc after prices produced a bearish Evening Star candlestick pattern. Breaking below support at 0.8811 marked by the 23.6% Fibonacci expansion on a daily closing basis initially exposes the 38.2% level at 0.8781. Near-term resistance is at 0.8861, the April 22 high, followed by the 0.89 figure.
Risk/reward considerations argue against taking a short position with prices trading in close proximity to relevant support. We will remain on the sidelines for the time being, waiting for a more attractive trading opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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