The US Dollar turned sharply lower against the Swiss Franc having found resistance above the 0.90 figure. A break below support at 0.8928, the 23.6% Fibonacci expansion, has exposed the 38.2% level at 0.8861. A further push downward beyond that aims for the 50% Fib at 0.8807. Alternatively, a reversal back above 0.8928 will clear the way for a test of falling trend line resistance set from
While a short position seems compelling from the technical and risk/reward perspectives, our long-term fundamental outlook calls for a broadly stronger US Dollar. Furthermore, the proximity of heavy event risk in the form of the US jobs report has us wary of committing to a directional bias. On balance, we will remain flat.