May 14, 2022
  • May 14, 2022

Technical Analysis of Swiss Franc: CHF / JPY, EUR / CHF, GBP / CHF

By on November 15, 2021 0

Swiss Franc, CHF, CHF / JPY, EUR / CHF, GBP / CHF – Talking Points

  • CHF / JPY Continues To Fall From New Year High, Previous Record Of 2021
  • EUR / CHF downtrend remains intact, a key pivot area for potential reversal
  • GBP / CHF has potentially bottomed out, previous support now resistance?

CHF / JPY technical analysis

After making a quick break up to new annual highs in the first few sessions of the month, the CHF / JPY has since fallen back. A rapid decline in the pair due to overbought conditions resulted in seven losing sessions of the last eight. As mentioned, the pair’s higher robust merger saw the Relative Strength Index (RSI) approaching 80, indicating that severe overbought conditions were present.

The downward movement over the past two weeks has been limited by resistance from the overhead trendline, which has guided prices lower. Price may continue to fall to the previous annual high of 122.771, a level that could serve as a key pivot. With sellers firmly in control of this crossover, traders may look for a test of the 50-day moving average if the previous annual high fails as support.

CHF / JPY daily chart

Chart created with TradingView

EUR / CHF technical analysis

EUR / CHF is also falling as price failed to maintain the 0.236 Fibonacci level at 1.064 as support. Despite the price move that will begin in November, the downtrend has continued as the pair seeks to test the upper bound of a key pivot area against 2020 lows. Price immediately reversed. compared to those levels in two separate tests in March and May of last year. If this happens again in the coming weeks, traders might consider retesting the aforementioned 0.236 Fib level. A break lower in this key area would result in cross trade at all-time lows since 2015.

EUR / CHF daily chart

Technical Analysis of Swiss Franc: CHF / JPY, EUR / CHF, GBP / CHF

Chart created with TradingView

GBP / CHF technical analysis

GBP / CHF appears to have bottomed above 1.2300 after a lower break of a bearish flag. Confirmation of the bear flag saw the cross break the lower limit of a descending channel it had been digging since early May. The sentiment was already bearish, as a cross of death had formed in early October. With 1.2300 supporting the price in the short term, the pair may find resistance in the form of previous support, being the lower bound of the multi-month descending channel. A breakout back in the channel could see the price retest 1.2500, but a failed breakout could put 1.2300 back into play.

GBP / CHF daily chart

Technical Analysis of Swiss Franc: CHF / JPY, EUR / CHF, GBP / CHF

Chart created with TradingView

Resources for Forex Traders

Whether you are a beginner or an experienced trader, we have several resources available to help you; tracking indicator sentiment of the trader, quarterly business forecast, analytical and educational webinars held daily, trade guides to help you improve trading performance, and one specifically for those who are new to forex.

— Written by Brendan Fagan, intern

Contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

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