USDCHF Five-Week Standoff at 2011 Close Low Breakout Risk BuildsU.S. Dollar / Swiss FrancFOREXCOM:USDCHFAshishforexcomUSD/CHF holds above the 2011 close low for a fifth week. A breakout from this tightening range could spark the next major move. Technical Outlook: Swiss Franc Technical Forecast we noted that USD/CHF was testing major support, “at the lower bounds of a multi-month range in price- looking for a reaction off this level in the days ahead. From a trading standpoint, a good zone to reduce short-exposure / lower protective stops- rallies should be limited to 8044 IF price is heading lower on this stretch with a close below 7882 needed to fuel the next major leg of the multi-year downtrend.” USD/CHF broke lower later that week with price plunging more than 5.4% off the January high. The bears have been unable to mark a weekly close below subsequent support at the 2011 low-close at 7669 for the past five weeks with price contracting within a range just above this pivot zone. Looking for the breakout heading into March trade. Weekly resistance is eyed at the 2011 low-week close (LWC) and the 38.2% retracement of the January range at 7769/71. Note that the 25% parallel now converges on this level and a breach / close above this slope is needed to threaten a larger recovery towards the 61.8% retracement and the July low at 7872/74. Strength beyond this zone would suggest a more significant low is in place and a larger reversal is underway. Subsequent resistance objectives are eyed with the yearly open at 7927 and the yearly January high at 8041. A break / close below the 7669-pivot zone would threaten resumption of the broader downtrend with subsequent support objectives seen at the 78.6% retracement of the broader 2012 advance at 7537 and the 100% extension of the 2022 decline at 7410. Note that this level converges on the lower parallel in mid-March- look for a larger reaction there IF reached. Bottom line: USD/CHF continues to contract within the February opening-range, and the immediate focus is on a breakout to offer guidance in the weeks ahead. From a trading standpoint, rallies would need to be limited to 7874 IF price is heading lower on this stretch with a weekly close below 7669 needed to fuel the next major leg for the decline. Keep in mind we get the release of Swiss Q4 GDP and the U.S. Produce Price Index tomorrow with retail sales and Non-Farm Payrolls on tap next week. Stay nimble into the monthly cross and watch the weekly closes here for guidance.