USD/CHF Weekly Review

Daily Chart of USD/CHF:

Note:All indicators for the overall outlook and predictions of USD/CHF are based on the daily forex charts and in some cases 4-hourly or weekly charts and is updated during the weekends.

Previous Outlook of USD/CHF:

“(2 weeks back) On the upside we expect a strong resistance in the range of 0.9366 to 0.9390. With this resistance holding we expect downward move towards the support zone of 0.9220/0.9230. However if the resistance of 0.9366 to 0.9390 does not hold a break above 0.9400 takes place then it will indicate the near-term bottoming and in such a case the pair should move up to test 0.9500 level.”

USDCHF Forecast For This Week:

US Dollar-Swiss Franc (USD/CHF) had gone slightly below the 0.9220 level mentioned by us 2 weeks back (quoted above) but the strong jump from 0.9206 broke above 0.9400 and then the pair moved as high as 0.9498 before closing for the week at 0.9427.

The resistance just 2 pips below the psychological 95.00 level keeps the immediate outlook for USD/CHF neutral and we expect some more downward consolidation first. However we would expect a good support in the range of 0.9340/0.9370. The current 55-day EMA is at 0.9373. Even if this support zone does not hold, a very strong support near 200-day moving average i.e. near 0.9314 is expected. Please check this USD/CHF chart alert for the same.

Over all as indicated in the above mentioned chart alert, even with any break over 0.9500 we would be cautious till a decisive break over 0.9567 does not take place. The currency pair has been into a very volatile sideways range above the psychological level of 0.9000 and around the resistance of the next psychological level of 0.9500. A strong break above 0.9567 is a must to expect further gains towards 0.9634 or possibly 0.9768.

Overall any decisive break below 0.9314 will bring back the focus towards downside and such a move should keep USD/CHF into an extended volatile sideways mode between 0.9000 and 0.9500.