USD/CHF, EUR/CHF Price Outlook: Failure at a Key Resistance
USD/CHF and EUR/CHF Price Outlook
EUR/CHF, USD/CHF - Better Performance Last Week
Last week Euro and US dollar rebounded against Swiss franc. EURCHF closed the weekly candlestick with 0.3% profit, meanwhile USDCHF closed with strong gains of 1.1%. However, at the start of this week buyers stopped, leaving prices shy of key resistance levels.
Alongside this, the Relative Strength Index (RSI) remained flat above 50 for USD/CHF indicating to buyer’s loss of momentum. In turn, the oscillator remained flat below 50 for EUR/CHF indicating to the buyer’s lack of momentum to start upward trend.
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USD/CHF Daily Price Chart (FEB 10, 2017 – JULY 31, 2019) Zoomed Out
USD/CHF Daily Price Chart (April 16 – JULY 31, 2019) Zoomed IN
Looking at daily chart, we notice on Monday, USD/CHF failed to close above 0.9930 and dropped to the lower trading zone 0.9860- 0.9930. Due to this development, the pair eyes a test of the low end of this zone.
Further close below the low end may send the price towards 0.9758. However, the weekly support levels underlined on the chart (Zoomed in) should be watched along the way.
On the other hand, a successful close above the high end of the zone could push the price towards 1.0008. Although, the weekly resistance levels marked on the chart (Zoomed in) specially 0.9951 should be kept in focus.
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EUR/CHF Daily Price Chart (JAN 1, 2017 – JULY 31, 2019) Zoomed Out
EUR/CHF Daily Price Chart (MAY 17 – JULY 31, 2019) Zoomed IN
Looking at the daily chart, we notice on Friday EUR/CHF failed to close above 1.1057 in a similar way to USD/CHF and dropped to the lower trading zone 1.1001 – 1.1057. Since the start of this week, the pair failed to test the high end of the zone, this suggests the price may be on the way for a test of the low end.
Further close below the low end could send the price towards the vicinity of 1.0960-50. Nonetheless, the weekly support levels underscored on the chart (zoomed in) would be worth monitoring.
On the flip-side, a successful close above the high end of the zone, may send the price towards 1.1190. However, the weekly resistance level and zones highlighted on the chart should be considered.
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.