Technical Outlook – Important CHF Pairs

Anil Panchal


Technical Outlook - Important CHF Pairs

Although, short-term ascending trend-channel favors USDCHF up-move, the seven month old descending trend-line, connecting January highs to March highs, coupled with the mentioned channel resistance, near 0.9845-50 area, could provide strong resistance to provide an immediate pullback towards 0.9750 to the pair. Should it break the said 76.4% Fibo level, it can test 0.9650-45 support area prior to targeting channel support, near 0.9600 round figure mark while a break of which could quickly fetch the pair down to 0.9450-45 support-zone, encompassing 200-day EMA and 61.8% Fibo. Moreover, an extended decline below 0.9445 on a closing negates the chances of pair’s near-term up-move, making it vulnerable to plunge towards sub-0.9200 region. Alternatively, a daily close above 0.9850 is likely triggering the pair’s upward trajectory towards 0.9985 – 1.0000 resistance area before rally to January highs, near 1.0230.


Ever since the EURCHF surpassed 1.0540-50 horizontal resistance, it kept extended the upwards trajectory, negating the recent pullback to 1.0530. The pair currently trades near five month highs, targeting 1.0790 – 1.0800 horizontal resistance, breaking which 200-day EMA and the 50% Fib, near 1.0840-50, can provide strong resistance to restrict the pair’s immediate up-move. Given the pair’s ability to surpass 1.0850 on a closing basis, it can fuel the up-move towards surpassing 1.1000 psychological mark, testing 61.8% Fibo, near 1.1125-30. Alternatively, a pullback towards 1.0540-30 can witness an extended down-move if it breaks the 1.0400 mark, forcing the pair to plunge towards 1.0250-40 support area, encompassing 23.6% Fibo. Moreover, a decline below 1.0240 is likely offering 1.000 mark before the pair settles for another up-round.


On Thursday, the GBPCHF negated the short-term ascending trend-channel break, triggered during Wednesday, signaling a pullback towards 1.5050-40 and the 1.4980-70 support areas. However, a break of 1.4970 can witness the channel support, coupled with 50-day EMA, as a strong point to reverse the move, failing to can make the pair vulnerable to plunge towards 1.4400 mark, 23.6% Fibo, with 1.4610 – 1.4600 being the intermediate support region. On the upside, a close above 1.5300 can continue raising the hopes for 1.5545-50 re-test. Moreover, an extended up-move beyond 1.5550 is more likely fueling the pair towards 2011 highs, near 1.5700 round figure mark prior to heading to 1.6000 psychological resistance.


While the descending triangle keep favoring CHFJPY downturn, formation support, near 126.30, quickly followed by the 200-day EMA, currently at 125.70, can provide a pullback to halt the pair’s current decline. Should it fail to reverse from the said EMA, it can plunge to 23.6% Fibo. 124.20 prior to testing 123.00 round figure mark which opens door for the pair’s downward trajectory towards 121.00. However, an upside break of the triangle resistance, at 128.00, which currently restricts the pair’s immediate up-move, can fuel the pair’s up-move towards 129.00, encompassing 50% Fibo and the 129.70-75 area that may extend the pair’s surge beyond 131.30, the 61.8% Fibo.

Follow me on twitter to discuss latest markets events @Fx_Anil

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.