USDCHF Technical Analysis | Sellers Struggle Below 0.94 | 24.08.2015

USDCHF Technical Analysis | Sellers Struggle Below 0.94 | 24.08.2015Talking Points :

  • USDCHF Technical Strategy : Flat
  • Support : 0.9441, 0.9332, 0.9156
  • Resistance : 0.9529, 0.9617, 0.9726

The US Dollar is working on a fifth consecutive day of losses against the Swiss Franc, with prices dipping to the lowest level in close to two months. Selling pressure has notably ebbed after an early push downward however, with the pair recoiling upward to hover near support at 0.9441 marked by the 61.8% Fibonacci retracement.

Confirmation of a break on a daily close below this barrier would expose the 76.4% level at 0.9332 as the next significant downside boundary. Near-term resistance is at 0.9529, the 50% Fib. While seemingly unlikely at this point, a full about-face reversal that generates a close above this threshold would open the door for a move to the 38.2% retracement at 0.9617 as the next upside objective.

Tactically speaking, risk/reward considerations argue against taking a trade on the short side with prices effectively sitting on support. On the other hand, the absence of a clearly defined bullish reversal signal warns that trying to pick a bottom is premature, particularly considering the strong momentum behind recent selling. As such, we will remain flat for now.

source

You may also like...

Leave a Reply