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The US Dollar continues to push higher against the Swiss Franc having reversed upward as expected after producing a bullish Piercing Line candlestick pattern. Prices are testing resistance in the 0.8896-0.8914 area, marked by the April 4 close and the 76.4% Fibonacci expansion at 0.8896. A break above that on a daily closing basis targets the 100% level at 0.8956. Alternatively, a drop back below the 61.8% Fib at 0.8859 exposes the 50% expansion at 0.8829.
Prices are too close to relevant resistance to justify a long position at current levels from a risk/reward perspective. We will stand aside for now, looking for a break above resistance to yield a buying opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com