News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/dTQqfHXNtM
  • Gold Prices Test $1800 Ahead of Fed Meeting, Real Yields Fall https://www.dailyfx.com/forex/market_alert/2021/07/27/Gold-Prices-Test-1800-Support-ahead-of-Fed-Meeting-Real-Yields-Fall.html
  • The Hang Seng Tech index tumbled 5.4% amid intensified fears about China's regulatory risk on various sectors. - Tencent (-6.2%) - Alibaba (-5.0%) - Meituan (-13.9%) - Hang Seng Index (-2.5%)
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/A0w6mhPMvH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.33%, while traders in Wall Street are at opposite extremes with 79.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/AY4wL5b1NV
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/NrcUfXKP8J
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.16% 🇬🇧GBP: 0.05% 🇪🇺EUR: 0.00% 🇦🇺AUD: -0.02% 🇨🇭CHF: -0.03% 🇳🇿NZD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UwJz4Gv6hT
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.12% FTSE 100: -0.02% Germany 30: -0.04% US 500: -0.16% Wall Street: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cGDe8jiSqf
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/ne0HPR7lO2
  • China considers levies on steel exports to tame domestic prices - BBG
Swiss Franc Outlook Brightens: NZD/CHF, CHF/JPY Primed for Action?

Swiss Franc Outlook Brightens: NZD/CHF, CHF/JPY Primed for Action?

Thomas Westwater, Analyst

Swiss Franc Technical Outlook – Talking Points

  • NZD/CHF weakness may accelerate on possible Death Cross Formation
  • CHF/JPY may see a near-term breakout from a Falling Wedge pattern

NZD/CHF Technical Outlook

The Swiss Franc has strengthened against the New Zealand Dollar this week, with NZD/CHF tracking near a 0.75% loss through Thursday. Since reaching a multi-year high in February at 0.6766, prices have dropped over 5%. The move lower formed a downward channel as prices pivoted between resistance and support, forming lower highs and lower lows.

The bearish outlook was bolstered this week, with a drop below the 200-day Simple Moving Average (SMA). Moreover, the shorter-term 50-day SMA may soon cross below the 200-day, which will form a Death Cross. If that crossover occurs, it will likely fuel the pair’s downside momentum to the Swiss Franc’s benefit.

NZD/CHF Daily Chart

nzdchf

Chart created with TradingView

CHF/JPY Technical Outlook

Despite sharp losses from June, the Swiss Franc’s technical stance against the Japanese Yen has brightened this month. CHF/JPY is nearly unchanged since July kicked off. A phase of consolidation in recent weeks has seen a Falling Wedge pattern take shape. This may result in a breakout as the pattern is inherently bullish.

Moreover, a bullish divergence in the Relative Strength Index (RSI) reinforces the bullish outlook, with higher lows in the oscillator coinciding with lower lows in price. That indicates downside momentum is waning. A breakout, if it occurs, will likely target the June high (122.77). While the 26-day Exponential Moving Average (EMA) appears to be the most immediate topside barrier, the path of the least resistance appears to be to the upside.

CHF/JPY 8-Hour Chart

chfjpy, bullish rsi divergence

Chart created with TradingView

Swiss Franc TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

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

DISCLOSURES