EUR/CHF and USD/CHF Closing with Loss
Last week EUR/CHF peaked at 1.11598 then declined as expected in our last update closing the weekly candlestick with nearly 0.5% loss of its value. On the other hand, USD/CHF suffered even more and closed with 1.5% loss on Friday.
Today, the Relative Strength Index (RSI) pointed higher for both however, it might be early to talk about a possible uptrend with EUR/CHF still below 50 and USD/CHF has not crossed above yet.
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USD/CHF Daily Price Chart (JAN 5, 2017 – JULY 17, 2019) Zoomed Out
USD/CHF Daily Price Chart (April 16 – JULY 17, 2019) Zoomed IN
Looking at daily chart, we notice USD/CHF on Monday U-turned at 0.9817 then rallied in the following day closing in a higher trading zone 0.9860 – 0.9930 and currently, the pair may be on its way to test the high- end of this zone.
Hence, a close above the high-end could open the door for the price to rally towards 1.0008 although, the weekly resistance levels marked on the chart (zoomed in) should be watched along the way.
In turn, a close below the low-end of the zone might send the price towards 0.9785 however, the weekly support levels mentioned on the chart (zoomed in) need to be kept in focus.
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EUR/CHF Daily Price Chart (JUL 17 , 2017 – JULY 17, 2019) Zoomed Out
EUR/CHF Daily Price Chart (MAY 3 – JULY 17, 2019) Zoomed IN
Looking at the daily chart, we notice EUR/CHF pressed lower on Friday then rebounded yesterday from the low end of the trading zone 1.1057- 1.1190. Therefore, the pair may be on its way to test the high-end of this zone contingent on clearing the daily resistance levels underlined on the chart (zoomed in).
Its worth noting that if EUR/CHF breaks and remains above the neckline of a double bottom pattern residing at 1.1172 this could open the door for the price to rally towards 1.1278 however, the price should first clear the high -end of the aforementioned trading zone with the weekly resistance levels highlighted on the chart.
On the flip-side, a close below the low-end of the trading zone might press the price towards 1.1001 nonetheless, the weekly support zone underscored on the chart needs to be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi