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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9114, 0.9070, 0.9000
- Resistance: 0.9175, 0.9223, 0.9272
The US Dollar may be on the verge of a turn lower against the Swiss Franc following the appearance of a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci retracementat 0.9114 exposes the 23.6% level at 0.9070. Alternatively, a turn above the 38.2% Fib expansion at 0.9175 opens the door for a test of the 50% threshold at 0.9223.
We bought USDCHF at 0.9068 and have since taken profit on half of our exposure. The stop-loss on remaining exposure is now at 0.9114 – our initial objective – as a precaution in the event that a larger downswing materializes.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com