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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9343, 0.9076, 0.8793
- Resistance: 0.9498, 0.9781, 1.0239
The US Dollar may be carving out a top against the Swiss Franc after prices put in a Bearish Engulfing candlestick pattern. Near-term resistance-turned-support at 0.9343, February 2 low, with a break below that on a daily closing basis exposing the 23.6% Fibonacci expansion at 0.9076. Alternatively, a reversal above the 61.8% Fib retracement at 0.9498 clears the way for a challenge of the 76.4% threshold at 0.9781.
Positioning is inconclusive at this point. On one hand, follow-through on the bearish reversal has failed to materialize. On the other, the Engulfing pattern setup has not been technically invalidated. We will stand aside for now, waiting for greater clarity to emerge before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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