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USD/CHF, EUR/CHF Forecast: EUR & USD to CHF Price - Levels to Keep in Focus

USD/CHF, EUR/CHF Forecast: EUR & USD to CHF Price - Levels to Keep in Focus

2019-12-09 15:00:00
Mahmoud Alkudsi, Market Analyst
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EUR/CHF & USD/CHF Technical Analysis

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USD/CHF, EUR/CHF - Price Action

On Wednesday, USD/CHF declined to 0.9855- its lowest level in over four weeks. The price rallied after and closed the weekly candlestick nearby 0.9900 handle with a 1.0% loss. Similarly, EUR/CHF fell to its lowest level in three weeks at 1.0921. On Friday, the pair closed on Friday with a 0.6% loss.

Last week, the Relative Strength Index (RSI) remained below 50 on both pairs indicating that the downside move was still intact.

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USD/CHF Daily Price Chart (Nov 1, 2017 – DEC 9, 2019) Zoomed Out

USDCHF price daily chart 09-12-19 Zoomed out

USD/CHF Daily Price Chart (June 25– DEC 9, 2019) Zoomed IN

USDCHF price daily chart 09-12-19 Zoomed in

Looking at daily chart, we notice USD/CHF still moving in the trading zone (0.9860 - 0.9930) entered in Dec 2. Last week, the price tested the low end of the zone however, rebounded then closed above it highlighting seller’s hesitation at this stage.

Thus, the pair could push higher towards the high end of the zone on the back of more exit operations from sellers. A close above the high end may encourage more market participants to rally USDCHF towards the vicinity of 1.0008-15. Although, the daily resistance levels and area marked on the chart (zoomed in) would offer attractive exit points for buyers.

That said, any close below the low end of the zone could send the price towards 0.9758 contingent on clearing the neckline of double top pattern with the weekly support level and area. if the pair breaks and remains below 0.9840 this suggests sellers could press towards 0.9660.

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EUR/CHF Daily Price Chart (Oct 10, 2017 – DEC 9, 2019) Zoomed Out

EURCHF price daily chart 09-12-19 Zoomed out

EUR/CHF Daily Price Chart (June 27 – DCE 9, 2019) Zoomed IN

EURCHF price daily chart 09-12-19 Zoomed in

From the daily chart, we notice on Thursday EUR/CHF rallied to the higher trading zone 1.0960 – 1.1001 on the back of some sellers took profit. Although, the price failed in multiple occasions to close above the 50-day average showing sellers may not be done yet.

Hence, a close below the 1.0950 could embolden market’s participants to press towards 1.0826. Nevertheless, the downside move may weaken at the weekly support area and levels underscored on the chart (zoomed in) as some sellers could exit the market at these points.

On the flip-side, a close above the high end of the zone could pave the way for buyers to take charge and push EURCHF towards the vicinity of 1.1057-63. Yet, the weekly resistance area marked on the chart should be considered.

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Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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