Swiss Franc Forecast: NZD/CHF, CAD/CHF Testing Key Chart Areas
Swiss Franc Technical Forecast – Talking Points
- NZD/CHF moves to test long-term 2007 trendline for second time this month
- Symmetrical Triangle provides breakout opportunity for CAD/CHF bulls
- Swiss Franc bulls disadvantaged against Canadian Dollar and New Zealand Dollar
NZD/CHF Technical Outlook
The Swiss Franc may be set for further losses against the New Zealand Dollar, as NZD/CHF’s strength stemming from the late December swing low continues to find support from its 9-day Exponential Moving Average. Moreover, trendline support is helping to guide the Kiwi higher against the Franc. Resistance from 2007 appears to be the most imposing obstacle for an extension higher, however.
A break above the aforesaid resistance would likely see prices extend further after defeating such a long-standing trendline. Alternatively, NZD/CHF will be forced to breach below the shorter-term resistance, with a drop to December’s trading range or lower being a scenario that may play out. Assuming longer-dated technical levels are stronger than their shorter counterparts, NZD/CHF may see lower prices in the coming weeks.
NZD/CHF Daily Price Chart
Chart Created with TradingView
CAD/CHF Technical Outlook
The Swiss Franc is in a fragile position against the Canadian Dollar, with CAD/CHF testing the upper range of a Symmetrical Triangle formed from early 2020. If prices manage to pierce above the pattern, it could fuel an extension higher. The 38.2% Fibonacci retracement from the March to June move may be bolstering resistance, however.
A move lower would see the 20- and 200-day Simple Moving Averages provide a possible area of support, both tracking roughly near the triangle’s midpoint. Still, a decisive break higher or lower may take place over the next month given the short runway left until the convergence of support and resistance. A near-term move lower would provide Swiss Franc bulls with a more neutral position, but the current posture favors more upside potential for the Canadian Dollar.
CAD/CHF Daily Chart
Chart created with TradingView
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--- Written by Thomas Westwater, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.