Swiss Franc Technical Outlook

  • GBP/CHF faces huge confluent checks at 200-week Easy Transferring Common and trendline resistance
  • AUD/CHF rides bullish momentum after clearing main transferring common on trendline assist
  • EUR/CHF aiming to breakout from an Ascending Triangle sample after 100-day SMA breach
Top Trading Opportunities in 2021

Top Trading Opportunities in 2021

Really helpful by Thomas Westwater

Get Your Free High Buying and selling Alternatives Forecast

GBP/CHF Technical Outlook

The Swiss Franc has been on the mercy of British Pound may because the begin of the 12 months and now faces a serious take a look at as GBP/CHF meets its downward trending 200-week Easy Transferring Common. Together with the long-term transferring common, a descending trendline from the Might 2016 swing excessive sits instantly overhead and will present some confluent resistance.

These obstacles possible function essentially the most substantial factors of resistance for Sterling bulls to beat earlier than setting sights on increased floor versus the Franc. An upside break might give strategy to additional good points, bringing the successive decrease highs set all through the previous few years into view. Alternatively, a breakdown right here may sap bullish power and ship the pair again to 1.2200 – a degree of resistance seen within the post-pandemic 2020 buying and selling vary.

GBP/CHF Weekly Chart

GBP/CHF Chart

Chart created with TradingView

AUD/CHF Technical Outlook

When stacked towards the Australian Greenback, the Franc hasn’t seen kinder remedy. The truth is, the Aussie-Greenback has been on an absolute tear towards CHF, with AUD/CHF breaking above its 200-week SMA simply final week with relative ease. To date the cross has proven no indicators of slowing down, however given the rate in its transfer increased, a short-term pullback could be unsurprising.

An unusually steep trendline from the post-pandemic March low gives a degree for bulls to regroup earlier than pushing increased. The not too long ago defeated 200-week SMA may give an inexpensive level for costs to consolidate on a down transfer. Costs might prolong increased, nonetheless, with the MACD oscillator persevering with to drive increased and the Relative Power Index showing to be transferring additional to the upside regardless of being in overbought territory.

AUD/CHF Weekly Chart

AUD/CHF Chart

Chart created with TradingView

EUR/CHF Technical Outlook

In keeping with the theme versus the British Pound and Australian Greenback, the Franc’s technical posture versus the Euro seems set for losses. EUR/CHF is presently testing an Ascending Triangle’s horizontal resistance after breaking above the 100-week SMA. Whereas usually a continuation sample, a break above resistance may reverse the sample’s previous downtrend and provides strategy to contemporary multi-month highs.

Momentum seems primed to hold costs increased, with the MACD line crossing above its sign line. The Relative Power Index can also be bullishly positioned to the upside with open air above earlier than hitting its overbought zone. If resistance holds, nonetheless, a return to the triangle’s ascending trendline could also be on the playing cards.

EUR/CHF Weekly Chart

EUR/CHF Price Chart

Chart created with TradingView

GBP/CHF, AUD/CHF, EUR/CHF TRADING RESOURCES

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the feedback part under or @FxWestwateron Twitter