USD/CHF, EUR/CHF Forecast: Price U-Turns Eying a Test of the Weekly Resistance
EUR/CHF and USD/CHF Outlook
USD/CHF, EUR/CHF – Hesitant Sellers
On Friday, EUR/CHF closed the weekly candlestick with a Doji pattern indicating to the seller’s indecision to keep leading the price. On the other hand, USD/CHF closed the weekly candlestick in the red however, with only 0.3% loss.
On Mid- August, the Relative Strength Index (RSI) rebounded from 30 and since then started to create higher highs with higher lows reflecting the seller’s weakness to press EUR/CHF lower. The oscillator U-turned form 45 and climbed back to 50 highlighting a similar conclusion on USD/CHF.
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USD/CHF Daily Price Chart (AUG 28, 2017 – AUG 28, 2019) Zoomed Out
USD/CHF Daily Price Chart (April 15 – AUG 28, 2019) Zoomed IN
Looking at daily chart, we notice on Monday USD/CHF rallied back to the higher trading zone 0.9758 – 0.9860 and currently, the price eyes a test of the high end of this zone.
The pair rallied on Friday to the high end however, failed to close above. Thus, any successful attempt from the buyers to force a close above the high end could push the price towards 0.9930. Although, the weekly resistance area and level marked on the chart (zoomed in) should be considered.
On the flip-side, any failure to close above the high end may send the price back to the low end. Further close below the low end may see USD/CHF falling towards 0.9639. Nonetheless, the weekly support level and area underscored on the chart need to be monitored.
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EUR/CHF Daily Price Chart (FEB 10, 2017 – AUG 28, 2019) Zoomed Out
EUR/CHF Daily Price Chart (JUN 5 – AUG 28, 2019) Zoomed IN
Looking at the daily chart, we notice August 2 EUR/CHF has been moving in the same trading zone 1.0810 – 1.0950. On August 7, the pair rebounded from the high end of the zone, since then started to move in a sideway pattern creating lower highs with higher lows.
Its worth noting that EUR/CHF maybe on course to create a double bottom pattern where the neckline resides at 1.0928. Hence, if the price breaks and remains above the neckline the pair may rally towards 1.1023. See the chart (zoomed in) to know more about the higher trade zone/s with the weekly resistance levels buyer would face along the way.
On the other hand, if EUR/CHF remains moving below the downtrend line originated from July 31 high 1.1062, this could encourage sellers to press for a test of the low end of the zone. Any close below the low end may send the price towards 1.0623 however, the weekly support levels underlined on the chart should be watched closely.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.