Technical Outlook of Important CHF Pairs: 23.05.2018

USD/CHF

While recent risk-off sentiment drove JPY higher, the CHF is another safe-haven that investors seek during uncertainty. As a result, the USDCHF has been observing a short-term descending trend-line that dragged the pair below 0.9920-15 horizontal-line and signals further downside towards the 0.9870 support-line. In case present risk-aversion remains intact for a bit longer and fetch the pair beneath 0.9870, the 0.9815 and the 0.9775 are likely rests that can be availed by the sellers. Alternatively, an upside break of 0.9920 rejuvenates the importance of 0.9955 and the 0.9985 resistances ahead of highlighting the 1.0000 round-figure; however, aforementioned TL, at 1.0020 now, could confine the pair’s additional recovery. Assuming the quote surpasses the 1.0020 barrier, it can quickly rise to 1.0055 and then to the 1.0080 north-side numbers.

EUR/CHF

Alike USDCHF, the EURCHF has also broke an important support, the 200-day SMA here, and is running downwards to test another support, namely nine-month old ascending trend-line, around 1.1555. Should prices continue declining after 1.1555 on a daily closing basis, the 1.1480 and the 1.1445 might entertain the Bears before pleasing them with 1.1360-55 support-area. Meanwhile, pair’s D1 close beyond 200-day SMA level of 1.1645 can activate the pullback targeting 1.1685 and the 1.1720 but the 1.1735, comprising 100-day SMA, might limit its further upside. It should also be noted that the pair’s sustained trading above 1.1735 might not hesitate challenging the 1.1775, the 1.1805 and the 1.1830-35 horizontal-resistance.

GBP/CHF

GBPCHF’s drop to the lowest levels since mid-March might soon be challenged by the 1.3145-35 support-confluence, including 200-day SMA, ascending TL stretched since late-August and an immediate horizontal-line, not to forget about the oversold RSI. Though, increased selling pressure below 1.3135 could make the pair vulnerable enough to plunge towards 1.3030 and the 1.3000 supports. Moreover, pair’s additional south-run under the 1.3000 can have 1.2900 and the 1.2860 as rest-points. On the upside, 100-day SMA level of 1.3340 may act as an adjacent resistance for the pair to clear in order to aim for the 1.3360 and the 1.3470. Furthermore, pair’s ability to achieve the 1.3470 could target the 1.3520-25 resistance-zone, encompassing 50-day SMA & downward slanting trend-line.

AUD/CHF

Irrespective of its latest dip, the AUDCHF is presently testing six-week long ascending trend-line, at 0.7445, which may trigger the pair’s U-turn in direction to the 0.7490, the 0.7515 and the 0.7540. If at all the buyers dominate trade sentiment after 0.7540, the 0.7590-95 and the 0.7600 round-figure could try disappointing them, failing to which might post 0.7625 on the chart. Should the pair refrains to respect the TL support and closes below 0.7445, the 50-day SMA level of 0.7435 and the 0.7415 can mark their presence whereas 0.7395 and the 0.7375 may become crucial to watch afterwards. Let’s say the pair keep weighing down below 0.7375, then the 0.7335, the 0.7300 and the 0.7265 seem gaining attention.

Cheers and Safe Trading,
Anil Panchal