Technical Outlook For USD/CHF, CHF/JPY, AUD/CHF & NZD/CHF: 03.08.2017

Technical Outlook For USD/CHF, CHF/JPY, AUD/CHF & NZD/CHF: 03.08.2017


Ever since the USDCHF broke 50-day SMA on a daily closing basis, the pair didn’t close below it and is now heading towards nearly three-month old descending trend-line resistance, at 0.9720. Given the pair’s ability to surpass the 0.9720, it gets the license to meet 0.9770 and the 100-day SMA level of 0.9800; however, its further advances may find it difficult to clear 0.9825 and the 0.9860 resistances. Meanwhile, the pair’s daily close below 50-day SMA level of 0.9645 may have 0.9625 and the 0.9600 as follow-on supports, breaking which it can drop to 0.9560 and the 0.9530 rest-points. In case if sellers refrain to respect 0.9530, chances of witnessing the quote’s south-run to re-test July lows, around 0.9740-35, can’t be denied.



Even if 113.80-75 horizontal-line triggered the CHFJPY’s bounce, the pair can’t be termed strong for even short-term unless it clears the 114.95–115.00 horizontal-line, which if broken enable prices to rally towards 115.40, 115.80-85 and the 116.40-50 region. Should buyers manage to conquer 116.50, they can then target 116.90 and the 117.10 resistances. On the downside, break of 113.75 can fetch the pair to the 113.40 and the 113.00 while its following declines can rest around 112.90 and the 112.50-45. In case of the pair’s additional drop after 112.45, 112.00 & 111.60 can please the sellers.



While AUDCHF’s bounce from 0.7660 signal brighter chances of its recovery to 0.7700, an immediate descending trend-line resistance, at 0.7725, might restrict the pair’s following upsides, breaking which 0.7740 and the 0.7755 can entertain short-term buyers. Given the pair’s further upside after 0.7755, the 0.7780 and the 61.8% FE level of 0.7830 should flash in Bulls’ radar. If at all the pair fails to sustain latest pullback and declines below 0.7660, an upward slanting TL, at 0.7615, seems crucial for traders to watch, which if broken can drag prices to 0.7565 and then to 0.7530. During the pair’s additional downside after 0.7530, the 0.7490 and the 0.7465 can become supports.



NZDCHF’s inability to sustain the eight-month old descending trend-line break indicates the pair’s re-test to 0.7140-30 horizontal-region. However, comparative strength of the NZD indicates less chances of the quote’s downside after 0.7130, which if happens can fetch it to 0.7100 and an upward slanting TL support of 0.7045. If the pair breaks 0.7045, the 0.7000 psychological magnet and the 0.6950 mark can be availed as rests. Alternatively, 0.7220 and the 0.7250 might offer immediate resistances to the pair, breaking which it can again rise to 0.7275 resistance-line. Moreover, a daily closing above 0.7275 can quickly please buyers with 0.7300 and the 0.7320 resistances while 0.7385-90 and the 0.7450 may act as following landmarks to achieve.

Cheers and Safe Trading,
Anil Panchal