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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9213, 0.8997, 0.8730
- Resistance: 0.9490, 0.9718, 0.9862
The US Dollar dropped to the lowest level in over two months against the Swiss Franc, with sellers now aiming below the 0.93 figure. A daily close below the 50% Fibonacci retracement at 0.9213 exposes the 61.8% level at 0.8997. Alternatively, a turn above 0.9428-90 opens the door for a challenge of the April 23 high at 0.9718.
While entering short is tempting from a purely technical perspective, we will tactically opt to stand aside. Erratic SNB policy moves since the beginning of the year imply a worrisome degree of outsized volatility risk in having exposure to anything CHF-related. As such, we prefer to stand aside.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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