After witnessing considerable strength, following the surprise SNB action, the CHF resumed its old trading pattern during recent days. However, there prevails a long distance to fill that gap and market players are more likely to concentrate on US labor market details, scheduled during the later hours of Friday, and the Swiss Inflation numbers, scheduled for release during next week, to fuel volatility into the Forex market.
Meanwhile, the following is a brief technical overview of USDCHF, NZDCHF and GBPCHF.
USDCHF continue following the ascending trend channel on H4 after the rigorous decline; however, the pair started losing its strength during the current week and rest near the ascending trend-line support, 0.9190. Should it break the same support level, it can immediately plunge to the 0.8925 and the support line of the channel, near 0.8880. Should it successfully break the 0.8880 mark, it can test 0.8650 support level before testing the 0.8500 mark. Alternatively, multiple resistances near 0.9285 and the 0.9350 can restrict the pair’s intermediate up-move before it rallies to the resistance line of the channel, 0.9450, quickly followed by the 0.9520 horizontal resistance level. On the break of 0.9520, it can rally towards 0.9650 and the 0.9780 mark.
Ascending trend channel formation also mark its presence on H4 chart of NZDCHF, signaling continued advance; however, the 0.6780 can become immediate support for the pair to observe. Should it fails to sustain the same support and declines further, it can test the support line of the channel, near 0.6730, which marks the bottom of the near-term decline of the pair. Given the pair’s inability to withstand near 0.6730, it can extend its decline towards 0.6600 support level. On the upside, 0.6890, followed by the upper line of the channel, near 0.6950, and the horizontal resistance level of 0.6980 can restrict the near-term up-move of the pair. If the pair closes above 0.6980, it can immediately rally towards 0.7100 mark. Moreover, a close above 0.7100 negates the chances of near-term up-move by the pair and signals the test of 0.7420 horizontal resistance.
With the slow and steady up-move of GBPCHF, the pair also forms ascending trend-channel on H4 with the ascending trend-line, presently near 1.3990, restricting the immediate decline of the pair. Pair’s reversal from the support line can fuel it towards 1.4180 immediate resistance level, followed by the upper-line of the channel and the horizontal resistance line, near 1.4350. On the break of 1.4350, the pair is likely to extend its rally towards 1.4480 and the 1.4650 horizontal resistance levels before rally to 1.4800 mark. Alternatively, a decline from the 1.3990 could force the pair to test 1.3750 support level before testing the 1.3630 and the 1.3480 mark which encompassed support line of the channel. On the sustained close below 1.3480, the pair becomes vulnerable to test 1.3150 and 1.2900 support levels.
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