Swiss Franc Notes

Important CHF Pairs’ Technical Update: 19.07.2017


Although USDCHF failed to provide the lowest closing in nearly 11-months during Tuesday, the pair continued trading southwards on Wednesday and is indicating a test to support-line of an immediate descending trend-channel, at 0.9500 now. However, oversold RSI might give rise to its pullback around 0.9500, failing to which can quickly fetch the quote to 2016 low around 0.9440. In case if the sellers refrain to stop after 0.9440 break, the 0.9380, the 0.9300 and the August 2015 low of 0.9255 can please them. Meanwhile, 0.9600 and the 0.9660 are likely nearby resistances that the pair traders should observe, clearing which upper-line of the channel, at 0.9690, followed by 50-day SMA level of 0.9700, might limit the pair’s recovery. During the pair’s successful trading above 0.9700, the 0.9760-65 and the 0.9810 can come-back on the chart.



Alike USDCHF, the GBPCHF also indicates further downside with 1.2390 and the 1.2360-50 TL acting as adjacent supports, breaking which 1.2280, 1.2230 and the 1.2200 rests seem wise to expect. Given the pair’s inability to hold 1.2200, the 1.2145 could become a small barrier before dragging prices to January lows, near 1.2100 round-figure. Alternatively, the 1.2495–1.2500, comprising 200-day SMA, should be expected as strong immediate cap for the pair, which if broken can trigger its recovery to the 1.2550, the 1.2610 and then to the 1.2650-60 horizontal-region. If at all buyers manage to surpass 1.2660 on a daily closing basis, the 1.2720 and the 1.2800 can be their next targets.



Having bounced from 116.45-40 horizontal-support, the CHFJPY indicates its short-term recovery towards 117.75-80 area, clearing which 118.00 and the 118.30 can entertain follow-on buyers. If prices continue rising after 118.30, the 118.60 and the 61.8% FE level of 119.25 should flash as resistances. Given the pair’s inability to stretch latest pullback, the 117.00 and the 116.60 might offer quick stops before reigniting the importance of 116.45-50 line. However, pair’s break of 116.40 makes it vulnerable to plunge towards the 115.90, the 115.15 and the 115.00 consecutive supports.



With its failure to extend the latest pullback beyond 0.7115, the NZDCHF seems all set to revisit the 0.6980 TL support ahead of meeting the 50-day SMA figure of 0.6950. Should CHF strength fetches the quote below 0.6950, the 0.6900, the 0.6870 and the 0.6845 can be expected as supports. On the upside, the 0.7115 and the 0.7130-40 horizontal-region are likely stops that the pair can avail in case of reversal. However, a break of 0.7140 on daily closing basis should be considered as a strong signal to propel prices towards 0.7170, 0.7200 and the 0.7260 resistance-levels.

Cheers and Safe Trading,
Anil Panchal