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Swiss Franc Technical Analysis: AUD/CHF, NZD/CHF

Swiss Franc Technical Analysis: AUD/CHF, NZD/CHF

Dimitri Zabelin, Analyst

Australian Dollar, New Zealand Dollar, Swiss Franc, NZD/CHF, AUD/CHF – TALKING POINTS

  • NZD/CHF technical are cues showing signs of topping
  • Pair still faces uphill battle as it approaches resistance
  • AUD/CHF getting increasingly closer to key cross section

NZD/CHF Hints at Topping: Reversal Ahead?

NZD/CHF has enjoyed an over-three percent rise following its ascension from the mid-November uptrend (red parallel channel). However, negative RSI divergence shows upside momentum is ebbing and a downside breakout may be in the cards. If the pair drops below rising support with follow-through, it may lead to NZD/CHF testing the 0.6386-0.6405 support zone.

NZD/CHF – Daily Chart

Chart showing NZD/CHF

NZD/CHF chart created using TradingView

Clearing that area would open the door to re-testing 0.62080 which would essentially wipe out the latter half of last month’s gains and progress it made heading into December. This is also the area where selling pressure may lighten up as buyers swoop in to lock in what could be a swing-low.

NZD/CHF – Weekly Chart

Chart showing NZD/CHF

NZD/CHF chart created using TradingView

Looking at a weekly chart shows that a short-term correction would likely reinforce the longer-term bearish bias if it forces the pair to retreat before making a fourth attempt at re-testing descending resistance. The 4-year ceiling has been able to stave off NZD/CHF from recovering after it plummeted over 30 percent in January of 2015 when the Swiss National Bank un-pegged the EUR/CJF exchange rate from the 1.20 level and caused the Franc to surge.

AUD/CHF Outlook

AUD/CHF is approaching a critical juncture where the gap between the August uptrend and May descending resistance channel is converging. A breakout in either direction could catalyze a recovery or selloff and could reveal a lot about what the collective outlook is on the pair’s short-term trajectory.

AUD/CHFDaily Chart

Chart showing AUD/CHF

AUD/CHF chart created using TradingView

A weekly chart shows a gloomier picture for AUD/CHF bulls. The pair only recently bounced back from its four-year low and is now looking to challenge a formidable descending resistance channel. Failure to clear it may lead discouraged bulls to offset their positions while short sellers may start flocking in.

AUD/CHF – Weekly Chart

Chart showing AUD/CHF

AUD/CHF chart created using TradingView

SWISS FRANC TRADING RESOURCES

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--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter

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

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