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The US Dollar began to recover against the Swiss Francas expected, seeming completing a Falling Wedge chart formation. Near-term resistance is now at 0.8873, 38.2% Fibonacci retracement, with a break above that targeting the 50% level at 0.8927. Alternatively, slipping back below the 23.6% Fib at 0.8806 would expose the Wedge top at 0.8770.
An alternate interpretation of current technical positioning leaves open the possibility that a Falling Channel is the dominant pattern in play rather than the Rising Wedge setup. The possibility of such a scenario makes us leery to enter long for the time being and we will continue to wait on the sidelines for greater confirmation to materialize.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com