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Prices stalled at trend line resistance set from late January after the US Dollar produced its strongest push upward in a month against the Swiss Franc. A break this barrier (now at 0.8880) initially exposes 38.2% Fibonacci retracement at 0.8921. Support is in the 0.8848-66 area,marked by the December 2013 closing bottom and the 23.6% level, with a break below that eyeing the February 28 lowat 0.8776.
The pair is trading too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, a short position seems premature absent a defined reversal signal. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com