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Important CHF Pairs: Technical Overview



Although short-term ascending trend-channel resistance triggered USDCHF pullback, the pair is more likely to reverse from 1.0130-25 support-confluence, comprising lower-line of the channel and 23.6% Fibonacci Retracement of its latest upside. During its reversal, the quote may find 1.0160, 1.0180 and the 1.0190 as nearby resistances before challenging the latest high of 1.0205 which also includes channel-resistance. Given the pair manage to surpass 1.0205, it becomes capable enough to extend its north-run towards 61.8% FE level of 1.0240. On the contrary, pair's break of 1.0125 can quickly drag it to 1.0100 and the 1.0080 prior to flashing 1.0055 on the chart. In case if Bears rule prices below 1.0055, chances to witness 0.9995 can't be denied.


Following its failure to surpass 50-day SMA, the EURCHF took a U-turn on Thursday, signaling its drop to 1.0745 and the 1.0715 adjacent supports. Should the pair declines below 1.0715, the 1.0690 may offer intermediate halt ahead of fetching prices to channel support of 1.0650, which if broken can magnify its weakness and print sub-1.0620 mark on the face of quote. However, pair's reversal from present levels may result 1.0795 and the 50-day SMA level of 1.0820 comebacks. If the prices rally beyond 1.0820, channel resistance-line and 38.2% Fibonacci Retracement of its February – June dip, near 1.0840-45, can restrict further advances, failing to which could please buyers with 1.0900 round figure.


Even as the GBPCHF presently trades around three-month high, resistance-line of a short-term ascending trend-channel may trigger its pullback to 1.2690 nearby support, breaking which 1.2620 may act as buffer prior to fetching the quote to channel-support & 100-day SMA level around 1.2585-80. Given the pair drops below 1.2580 on a daily closing basis, the 1.2500 becomes its following rest, which if cleared strengthens the bear to demand 1.2430 level. Meanwhile, pair's successful close above 1.2800 can fuel it to confront five-month old descending trend-line of 1.2925. Should prices manage to break 1.2925, 50% Fibonacci Retracement of May – October downturn, at 1.3115 and the 200-day SMA level of 1.3210 become a concern to observe for traders.


Alike GBPCHF, the CHFJPY is also likely to witness a pullback towards 112.60 if it fails to break short-term ascending trend-channel resistance of 113.00. Given the pair drops below 112.60, 61.8% FE level of 112.35 and the 111.80 might please sellers, which if broken can flash 111.20 on the chart. However, pair's additional declines below 111.20 may find it hard to dip below channel-support mark of 110.85. Alternatively, continued upside of the pair beyond 113.00 may help witness 113.70, comprising 100% FE, and then to the 114.15 resistances. In case if the pair remains strong above 114.15, the 115.00 and the 115.40 are following north-side figures to appear..

Cheers and Safe Trading,
Anil Panchal

Source: https://www.mtrading.com/analytics/technical-analysis/important-chf-pairs-technical-overview
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