The Swiss Franc Tests Key Levels In Late Asian Session

• 27 Nov 2017

USD/CHF

The USD/CHF has been in decline since mid-October as the Dollar continues to weaken. The pair is now testing the 0.979 price level having had three consecutive breaks of the lower Bollinger band. A bearish cross of the zero line on MACD indicates there is further downside potential as RSI has not hit the 30 oversold line as yet. Sellers could push the pair to the next support level at the 0.973 price line.

CHF/JPY

The CHF/JPY pair is testing both the 113.78 price line and the 20-period EMA. However, long upper shadows in both today’s and the previous trading session suggests that sellers are still active in the Swiss Franc. MACD remains bearish and RSI has flattened just above the 30 oversold line. Volume appears to be rising, which could suggest that buyers have the conviction to push prices beyond the 113.78 price level and if so, a break would be significant.

CAD/CHF

The CAD/CHF pair has broken below an extended trading range between the 0.770 and 0.786 price levels.  At the same time, MACD has broken below the zero line indicating momentum may be with sellers. However, accompanying the break, is a bullish candle with RSI indicating potential for a revival from current bearish conditions. A full break (a candle closing below the 0.770 price level) will be required to confirm the downtrend.

EUR/CHF

The EUR/CHF has hit a market top which on two previous occasions has resulted in a a strong bearish reaction. A strong bullish move to the top was accompanied by a spike in volume which has since dissipated. RSI is approaching overbought conditions, however, MACD remains neutral. If the pair is able to cross the 1.169 price line it will prove to be significant. A rejection of the price level will likely result in the pair trading within the 1.158- 1.169 price range in the near-term.