USD/CHF: Buyers Overcome Parity Level
Dailyfx | Mar 12, 2015 03:16AM ET
Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9987, 0.9841, 0.9660
- Resistance: 1.0132, 1.0313, 1.0604
The US Dollar extended its advance against the Swiss Franc for a tenth consecutive day, with buyers claiming a foothold above the parity threshold. Near-term resistance is at 1.0132, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 1.0313. Alternatively, a reversal back below the 50% Fib at 0.9887 clears the way for a challenge of the 38.2% expansion at 0.9841.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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