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Swiss Franc Technical Analysis – USD/CHF, CHF/JPY. Ranges or Trends?

Swiss Franc Technical Analysis – USD/CHF, CHF/JPY. Ranges or Trends?

Daniel McCarthy, Strategist

Swiss Franc, USD/CHF, CHF/JPY - Talking Points

  • USD/CHF has consolidated in a range but might see a breakout
  • CHF/JPY has seen some sideways action but remains in a trend
  • Can the Swiss Franc develop a trend against the US Dollar?

USD/CHF TECHNICAL ANALYSIS

USD/CHF has been caught in a 0.90868 – 0.93735 range since August last year.

It has recently remained above a series of short, medium and long term simple moving averages (SMA).

A bullish triple moving average (TMA) formation requires the price to be above the short term SMA, the latter to be above the medium term SMA and the medium term SMA to be above the long term SMA. All SMAs also need to have a positive gradient.

Although USD/CHF is only just above the short-term 10-day SMA, the criteria for a bullish TMA has been met.

Resistance might be at the previous highs and pivot points of 0.92781, 0.92944, 0.92970, 0.93430 and 0.93735.

On the downside, support could be at the previous lows and pivot points of 0.91772, 0.91079, 0.91024, 0.90920 and 0.90868. Support may also lie at the SMA themselves.

USD/CHF CHART

LONGER TERM PERSPECTIVE – USD/CHF AND CHF/JPY

The longer-term chart for USD/CHF shows a potential bearish Pennant Formation.

The longer-term CHF/JPY chart illustrates that the ascending trend channel remains intact.

CHF CHART

Chart created in TradingView

CHF/JPY TECHNICAL ANALYSIS

CHF/JPY has shown a tendency for sideways trading before breaking out and then consolidating again. This could be happening at present with the new trading range potentially being 123.593 – 127.078.

These trading blocks have been shifting higher over the last 6 months as it remains within the longer-term ascending trend channel.

The price is between the 34 and 55-day SMA, which may re-iterate this sideways pattern for now. A break either side of the trading range might see momentum pick-up in that direction.

The long term 100 and 200-day SMA lie below the price with a positive gradient. This may indicate that there is underlying bullish momentum intact.

Support could be at previous lows and pivot points of 124.186, 123.593, 122.670, 122.437, 122.140, 121.211, 118.938 and 117.545.

On the topside, the recent highs of 125.67 and 127.078 are possible resistance levels.

CHF/JPY CHART

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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