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Forex: USD/CHF Technical Analysis ? Tight Range Trade Persists

February 7, 2014

Ilya Spivak

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support: 0.8986 (23.6% Fib exp.), 0.8957 (trend line)
  • Resistance: 0.9038 (38.2% Fib exp.), 0.9081 (50% Fib exp.)

    Prices edged lower as expected after producing a Doji candle below resistance at 0.9038, the 38.2% Fibonacci expansion. From here, a break below the 23.6% Fib at 0.8986 on a daily closing basis targets a rising trend line set from mid-December, now at 0.8957. Alternatively, a turn above 0.9038 aims for the 50% Fib at 0.9081.

    On balance, prices are wound up in to a narrow congestion range, with little by way of actionable trade setups clearly apparent. Entering short with the pair in close proximity to support is unattractive from a risk/reward perspective, while trying long lacks confirmation of reversal. We will stand aside for now until something palatable emerges.

    dailyclassics_usd-chf_body_Picture_11.png, Forex: USD/CHF Technical Analysis - Tight Range Trade Persists

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    Source: DailyFx

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