Swiss Franc Technical Analysis – USD/CHF, CHF/JPY. Ranges or Trends?

Swiss Franc, USD/CHF, CHF/JPY – Talking Points

  • USD/CHF Consolidated in a Range but May See a Breakout
  • CHF/JPY saw sideways action but remains in a trend
  • Can the Swiss franc develop a trend against the US dollar?

USD/CHF TECHNICAL ANALYSIS

USD/CHF has been caught in a range of 0.90868-0.93735 since August last year.

It has recently remained above a series of short, medium and long-term maturities. simple moving averages (SMA).

A bullish triple moving average (TMA) formation requires price to be above the short-term SMA, the latter above the medium-term SMA, and the medium-term SMA above the long-term SMA. All SMAs should also have a positive gradient.

Although USD/CHF is only just above the short-term 10-day SMA, the criteria for a bullish TMA have been met.

Resistance could be seen at previous highs and pivot points of 0.92781, 0.92944, 0.92970, 0.93430 and 0.93735.

On the downside, support could be seen at previous lows and pivots of 0.91772, 0.91079, 0.91024, 0.90920 and 0.90868. Assistance can also be at the level of the SMA itself.

LONGER-TERM OUTLOOK – USD/CHF AND CHF/JPY

USD/CHF longer term chart shows potential downside Flag formation.

The longer term CHF/JPY chart shows that the ascending trend channel remains intact.

GRAPH IN CHF

Graphic vscreated in TradingView

CHF/JPY TECHNICAL ANALYSIS

CHF/JPY showed a sideways trading trend before breaking down and then consolidating again. This could happen currently, with the new trading range potentially being 123.593-127.078.

These trading blocks have been rising over the past 6 months as they remain within the longer term ascending trend channel.

The price sits between the 34 and 55 day SMA, which may reiterate this sideways pattern for the time being. A breakout either side of the trading range could lead to renewed momentum in that direction.

The long-term SMA of 100 and 200 days lies below the price with a positive gradient. This may indicate that there is underlying bullish momentum intact.

Support could be at previous lows and pivots of 124.186, 123.593, 122.670, 122.437, 122.140, 121.211, 118.938 and 117.545.

On the upside recent highs of 125.67 and 127.078 are possible resistance levels.

CHF/JPY CHART

Graphic vscreated in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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