EUR/CHF & USD/CHF Technical Analysis
- Euro and US Dollar against Swiss Franc charts and analysis
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USD/CHF, EUR/CHF - Price Action
On Nov 18- USD/CHF declined to 0.9858 – its lowest level in two weeks. However, the price rallied on the following day and settled above 0.9900 handle. The pair closed the weekly candlestick in the green with a 0.7% gain.
Similarly, on Nov 14 EUR/CHF closed with a bullish Doji pattern, highlighting seller’s indecision. This opened the way for buyers to take over and rally the price later. On Friday, the price closed the weekly session with nearly 0.5% gain.
Last week, the Relative Strength Index (RSI) pointed higher on both pairs, then crossed above 50 signaling the end of downtrend momentum and a possible start of uptrend.
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USD/CHF Daily Price Chart (OCT 8, 2017 – NOV 25, 2019) Zoomed Out
USD/CHF Daily Price Chart (May 1– NOV 25, 2019) Zoomed IN
Looking at daily chart, we notice on Thursday USD/CHF closed above 50-day average then rallied to a higher trading zone 0.9930 – 1.0008, eyeing a test of the high end of the zone.
Hence, a close above 1.0015 could cause more bullishness towards the vicinity of 1.0112-18. Nevertheless, bullish momentum may weaken at the weekly resistance levels underscored on the chart (zoomed in) as buyers could take profit at these points.
On the other hand, any failure in closing above the high end could reverse the pair’s direction sending USDCHF towards the low end of the zone.
Further close below 0.9922 may entice more sellers to join the market and send the price towards the vicinity of 0.9860-52. Having said that, the daily support level underlined on the chart should be watched closely. Read our last update to know more about further bearish scenario.
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EUR/CHF Daily Price Chart (Oct 10, 2017 – Nov 25, 2019) Zoomed Out
EUR/CHF Daily Price Chart (July 1 – Nov 25, 2019) Zoomed IN
Looking at the daily chart, we notice on Nov 19 EUR/CHF rallied then closed above 50-day average. However, the price remained in the same trading zone 1.0950- 1.1001 as buyers failed in multiple occasions to push to the price to the higher zone.
Today, the pair tests the high end of the zone. Hence, a close above the high end could convince more buyers to join and to push EURCHF towards the vicinity of 1.1057-63. Although, the weekly resistance area underlined on the chart (zoomed in) should be considered
In turn, another failure in closing above the high end of the zone could mean weaker bullish momentum. This could send the price towards the low end of the zone.
Further close below the low end could open the door for sellers to take the initiative and press towards 1.0826. That said, the daily and weekly support levels and area marked on the chart should be monitored.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
