(Bloomberg) -- Investors should sell the U.S. dollar against the Swiss franc amid greenback rallies with price charts showing the U.S. currency’s rise from its November low may be coming to an end, BNP Paribas SA said.
The dollar’s 7.6 percent increase met resistance at 1.0795 versus the franc on Feb. 5, just shy of 1.0825, a level representing a 38.6 percent Fibonacci retracement of the greenback’s 2008-2009 decline, technicians including Andrew Chaveriat wrote in a report. The analysts expect the dollar to head for 1.05 after breaking near-term support at 1.0595.
“A clean break of 1.0495 would increase the odds the January and potentially November rallies are complete,” New York-based Chaveriat wrote in a report yesterday.
Fibonacci analysis is based on the idea that asset prices reach peaks and troughs at specific percentages of previous trends in the chart.
The dollar gained as much as 0.8 percent to 1.0721 francs in New York, from 1.0638 yesterday. It has climbed 5.1 percent since its January low of 1.0131, and 7.6 percent since bottoming at 0.9918 franc on Nov. 26. Only Taiwan’s dollar has outperformed the greenback versus the franc since November.
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