To receive Ilya's analysis directly via email, please SIGN UP HERE
The Swiss Franc broke out of a tight consolidation pattern last week, with USD/CHF testing support at 0.8905 marked by the 38.2% Fibonacci expansion. A daily close below this boundary targets the 0.50% Fib at 0.8828. Near-term trend line resistance-turned-support is now at 0.8978, followed by the 23.6% expansion at 0.9001.
Entering short looks unattractive from a risk/reward perspective as prices hover just a hair above near-term support. A long position would presuppose a bounce without any meaningful evidence pointing to such an outcome in the chart setup. As such, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com