Swiss Franc Firming Against US Dollar and Euro. Will Momentum Take CHF Higher?

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Swiss Franc, ER/CHF, Euro, USD/CHF, US Dollar – Talking Points

  • EUR/CHF and USD/CHF put in Double Tops on the identical time in May and June
  • EUR/CHF has moved significantly decrease since, however USD/CHF has held up higher
  • With USD/CHF making decrease lows and decrease highs, will it comply with EUR/CHF down?

EUR/CHF TECHNICAL ANALYSIS

EUR/CHF made a 7.5-year low on the finish of final month at 0.9699, shifting under the earlier low of 0.9804.

Since breaking decrease, the value has not managed to reclaim 0.9804 and it could proceed to supply resistance. The 21-day Simple Moving Averages (SMA)is at the moment at that stage, doubtlessly including resistance.

Further up, the current peak of 0.9957 would possibly supply resistance forward of the break level at 0.9973.

In the final session, the value has crossed under the 10-day SMA and stays under the 21-, 55-, 100- and 200-day SMAs.

A bearish triple shifting common (TMA) formation requires the value to be under the quick time period SMA, the latter to be under the medium time period SMA and the medium time period SMA to be under the long run SMA. All SMAs additionally have to have a unfavorable gradient.

Looking at EUR/CHF, the standards for a bearish TMA has been met and could point out that bearish momentum might evolve additional.

Support could be on the current low of 0.9699 or additional down on the 161.8% Fibonacci Extension of 0.9638.

Chart created in TradingView

USD/CHF TECHNICAL ANALYSIS

USD/CHF has bounced off low made initially of this month at 0.9470 to trade in a variety of 0.9545 – 0.9650. These ranges would possibly present help and resistance respectively.

While the value is under all short-, medium- and long-term Simple Moving Averages (SMA), they’ve constructive and unfavorable gradients. This could recommend a scarcity of conviction for directional momentum which may see additional vary buying and selling.

Re-iterating this risk is the value criss-crossing the 10-day SMA. Recent historical past has proven that when the value crosses the 10-day SMA, momentum in that route continues. That shouldn’t be the case during the last week.

The current low of 0.9470 could present help forward of the break level at 0.9460. On the topside, resistance could be on the break level of 0.9710 or the July peak of 0.9886.

USDCHF CHART

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter





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