Technical Update - USDCHF, GBPCHF, EURCHF and NZDCHF

September 23, 2015 14:14

USDCHF

The pair's near-term direction remains indecisive as it once again managed to bounce back from 200-day SMA important support and has moved back towards a descending trend-line resistance, which it has repeatedly failed to conquer. The pair is again attempting a move towards the ascending trend-line resistance, currently near 0.9800-0.9810 zone. Should the pair now manage to clear this important resistance it seems to immediately aim towards testing August month high level resistance near 0.9890-0.9900 area, also coinciding with 61.8% Fib. expansion level. Meanwhile, reversal from current level now seems to find immediate support near 0.9740 area, which is closely followed by a strong support near 0.9700 mark. Failure to hold 0.9700 mark support seems to drag the pair towards 0.9600 intermediate support and eventually back towards the very important 200-day SMA support, currently near 0.9540 region.

GBPCHF

On 4-hourly chart, the pair has moved within a trading range as depicted by a Rectangular formation. The pair is currently near the lower end of the trading range support near 1.4910-1.4900 area. Should the pair fail to rebound from the trading range support, it is likely to immediately drop to test 1.4800 intermediate support (38.2% Fib. retracement level) before heading towards a very important support confluence near 1.4600 mark, comprising of 200-day SMA and 50% Fib. retracement level of May to August up-swing. Alternatively, a bounce from the trading range support is likely to confront immediate resistance at 23.6% Fib. retracement level near 1.5030 region. This is followed by the upper end of the trading range resistance near 1.5100 mark. A decisive break-through the upper end of the trading range clears the way for continuing the pair's near-term upward trajectory back towards August highs resistance near 1.5400 mark, with minor intermediate resistance near 1.5260-70 horizontal area.

EURCHF

After rising to its highest level since Jan. 15, the pair on 1-hourly chart seems to have moved within a descending trend-channel with 1.0900-1.0920 zone, marking the upper trend-line of the channel, acting as immediate resistance. A decisive strength above this immediate resistance, marking a break-through the descending channel, seems to boost the pair back towards 1.1000 round figure mark resistance. Meanwhile, on the downside, sustained weakness below 1.0880 is likely to find immediate support near 1.0850-40 zone. But major downside support is pegged at the lower trend-line support of the channel, currently near 1.0800 mark. Failure to hold the descending trend-channel support opens room for a retest of sub-1.0700 mark support, nearing the very important 200-day SMA.

NZDCHF

Similar to GBPCHF, the pair too has moved within a narrow trading range but near the multi-year low level tested in August. The lower end of the trading range support is pegged at 0.6060-50 area, which if broken decisively is likely to set the stage for a retest of the recent low level support near 0.5760-50 zone. On the upside, 0.6190-0.6200 area seems to act as immediate resistance and a move above this immediate resistance is likely to lift the pair back towards the top-end of the trading range resistance near 0.6270-80 area. A clear strength above this previous strong support, now turned strong resistance, has the potential to continue supporting the near-term recovery back towards another strong resistance near 0.6500 region.

Follow me on twitter to discuss latest markets updates @Fx_Haresh

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.