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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8983, 0.8934, 0.8904
- Resistance: 0.9022-36, 0.9061, 0.9110
The US Dollar resumed its advance against the Swiss Franc after a brief period of consolidation, soaring to the highest level in nearly two months. Buyers are testing resistance in the 0.9022-36 area, marked by the 50% Fibonacci expansion and the June 5 high. A daily close above that exposes the 61.8% level at 0.9061. Alternatively, a reversal below the 38.2% Fib at 0.8983 clears the way for a challenge of the 23.6% expansion at 0.8934.
Risk/reward considerations argue against entering long with prices trading in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.
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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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