USD/CHF, EUR/CHF and GBP/CHF Forecasts – Swiss Franc Stabilizes

USD/CHF Technical Analysis

The US dollar is slightly negative against the Swiss franc in early trading on Monday, although it should be noted that it is Easter Monday being celebrated in multiple European countries, so I do not know how much I read into any price action. That being said, we are at the 200-day EMA, which in and of itself does warrant some attention, but we will have to see how this plays out.

If we were to break to the upside and clear the 0.8050 level, that opens up the 0.81 level, which then a breach of that would open up a much longer-term recovery. The interest rate differential continues to favor the dollar. We should have a floor at the 0.79 level.

EUR/CHF Technical Analysis

The Euro has rallied a bit but gave back some of the gains as the 61.8% Fibonacci retracement level continues to offer resistance right along with the 200-day EMA. If we can break above the 200-day EMA at the 0.9250 level, then it opens up the possibility of the 0.93 level.

We do know that the interest rate favors the Europeans and the Swiss of course will intervene if the franc gets too strong, but with the bounce that we have seen, I think that is probably off the table. This looks more like a buy on the dip type of market.

GBP/CHF Technical Analysis

The British pound is choppy against the Swiss franc as we are banging up against the 1.06 level. The 1.06 level opens up the possibility of a move to the 1.0685 level. A pullback from here and a breakdown below the 50-day EMA opens up the possibility of a drop to the 1.05 level, possibly 1.04. That would be a risk appetite destruction type of move, but again, the interest rate differential pays you to be on the long side of this trade and if we can get past the 1.06 level, I probably will be.

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