USD/CHF Technical Strategy: Flat
Support: 0.8848 (Dec'13 closing bottom), 0.8798 (Dec 27 low)
Resistance: 0.826 (23.6% Fib ret.), 0.8949 (trend line)
Prices are consolidating above support at 0.8848, the December 2013 closing bottom. Near-term resistance is at 0.8926, the 23.6% Fibonacci retracement, with a break above that exposing a falling trend line set from late January (now at 0.8949). Alternatively, a break below support aims for the December 27 low at 0.8798.
Narrow range-bound trading conditions do not offer a clear-cut directional trade setup. From a risk/reward perspective, prices are too close to support to justify a short. On the other hand, a defined bullish reversal signal is absent for now. We will remain flat until something actionable materializes.