USD/CHF, EUR/CHF and GBP/CHF Forecasts – Swiss Franc Sells Off

USD/CHF Technical Analysis

The US dollar initially fell against the Swiss Franc but turned right back around to jump as the jobs report came out hotter than anticipated by quite a bit, almost double, just shy of doubling what traders had been expecting. So, this of course brought rates up in the United States, which of course works against the Swiss Franc being a currency that has 0 interest rates.

That being said, we do have a bit of resistance near the 0.7925 level. If we can break above there, the 200-day EMA comes into the picture. Otherwise, pullbacks will continue to look at the 50-day EMA at the 0.7850 area as support.

EUR/CHF Technical Analysis

The Euro initially fell but found the 50-day EMA enough support to rally a bit. It looks like we are going to challenge 0.92 again, which is an area that’s been both support and resistance recently. It does show proclivity to rally on these short-term pullbacks, so I think eventually we will probably prevail and go looking toward the 200-day EMA above.

GBP/CHF Technical Analysis

The British pound is actually threatening the 200-day EMA and is above the 1.06 level, showing signs of life. Ultimately, I think this is a market that once it breaks above the 200-day EMA could really start to take off, perhaps to the 1.0750 level, maybe even beyond that. There is support at the 50-day EMA at 1.0575, so keep that in mind. I think buying the dip continues to work here as the interest rate differential is so strong. I have no interest in buying the Franc, not against the Pound, or anything else for that matter.

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