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Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support:0.9428, 0.9213, 0.8997
  • Resistance: 0.9695, 1.0126, 1.0253

The US Dollar looks vulnerable to deeper losses against the Swiss Franc after prices lost their grip on the 0.97 figure. Near-term support is at 0.9428, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 0.9213. Alternatively, a reversal above the 23.6% Fib at 0.9695 clears the way for a challenge of the 1.0086-126 area (trend line support-turned-resistance, March 12 high).

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.

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USD/CHF Technical Analysis: Sellers Aim Below 0.95 Figure

Daily Chart - Created Using FXCM Marketscope

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


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