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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.9312, 0.9196, 0.9079
- Resistance:0.9456, 0.9545, 0.9689
The US Dollar declined as expected against the Swiss Franc after prices formed a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 0.9312, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 0.9196-0.9208 area marked by a rising trend line set from early May and the 50% level. Alternatively, a turn back above the 23.6% Fib at 0.9456 clears the way for a test of the 14.6% retracement at 0.9545.
The dominant trend appears to favor the upside, meaning recent weakness is corrective. With that in mind, we will opt against taking up the short side and wait for a buying opportunity following confirmation that the pullback has been exhausted.
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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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