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Euro and US Dollar Price Outlook

Did you check our latest forecasts on USD and EUR and Gold? Find out more for free from our Q3 forecasts for commodities and main currencies

USD/CHF, EUR/CHF – Stronger Swiss Franc Across the Board

Last week Euro and US dollar continued losing value against Swiss franc. USDCHF closed the weekly candlestick with nearly 1.0 % loss, meanwhile EURCHF suffered less losses closing on Friday with 0.2% loss only.

Yesterday, EUR and USD softened further against CHF. EURCHF tested a fresh low at 1.0841 – its lowest level in nearly 25 months. In turn, USDCHF printed 0.9659- its lowest level in over ten months.

The Relative Strength Index (RSI) remained flat around 37- 40 on USD/CHF indicating to the sellers losing momentum with the buyer’s lack of momentum to lead the price. On the other hand, the oscillator moved last week in the oversold territory on EUR/CHF. Yesterday, (RSI) abandoned this territory although, remained nearby emphasizing the seller’s still in charge.

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USD/CHF Daily Price Chart (AUG 1, 2017 – AUG 14, 2019) Zoomed Out

USDCHF price daily chart 14-08-19 Zoomed out

USD/CHF Daily Price Chart (June 12 – AUG 14, 2019) Zoomed IN

USDCHF price daily chart 14-08-19 Zoomed in

Looking at daily chart, we notice since August 6 USDCHF has been testing the high end of current trading zone 0.9639 – 0.9758 however, was failing in every attempt to close above.

Thus, a close above the high end of the zone could push the price towards 0.9860. Although, the weekly resistance levels marked on the chart (zoomed in) would be worth monitoring. See the chart to find out more about the higher trading zone with the weekly resistance levels to buyers would face in a further bullish move.

On the flip side, a close below the high end of the zone could press USDCHF towards the low end. However, the daily support levels underlined on the chart need to be considered. Further close below the low end could mean more bearishness towards 0.9546. The weekly support levels mentioned on the chart would need the trader’s attention.

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EUR/CHF Daily Price Chart (March 1, 2017 – AUG 14, 2019) Zoomed Out

EURCHF price daily chart 14-08-19 Zoomed out

EUR/CHF Daily Price Chart (MAY 31 – AUG 14, 2019) Zoomed IN

EURCHF price daily chart 14-08-19 Zoomed in

Looking at the daily chart, we notice last week EUR/CHF rebounded twice from the high end of the current trading zone 1.0960 – 1.0810 and fell after eyeing a test of the low end of the zone.

Hence, a close below the low end of the zone could send the price towards 1.0623. However, the weekly support levels underlined on the chart (zoomed in) should be watched along the way.

On the other hand, any failure in closing below the low end, could push the price towards the high end. Further close above the high end may cause a rally towards 1.1001. Nonetheless, the weekly resistance levels underscored on the chart need to be considered. See the chart to know more about the higher trading zone with the resistance vicinity in a further bullish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi