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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8934, 0.8904, 0.8861
- Resistance: 0.8983-94, 0.9022-36, 0.9061
The US Dollar is consolidating after prices advanced to the highest level in a month against the Swiss Franc. Near-term resistance is in the 0.8983-94 area, marked by the 38.2% Fibonacci expansion and the June 13 close. A break above that on a daily closing basis aims for the 0.9022-36 region, bracketed by the 50% level and the June 5 high. Alternatively, a reversal back below the 23.6% Fib at 0.8934 clears the way for a test of the 14.6% expansion at 0.8904.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. 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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