A month old descending trend-line, at 0.9685, is likely to challenge the USDCHF’s short-covering moves from 0.9600, if not then the pair’s rise to 0.9710 and the 200-day SMA level of 0.9740 seem imminent. However, the 0.9780-90 area could restrict the pair’s upside past-0.9740, failing to which might propel prices to 0.9850-55 and the 0.9900 resistance-levels. Meanwhile, the 0.9600 and a downward slanting support-line, at 0.9580 now, can limit the quote’s immediate declines. In case the pair refrains to respect 0.9580 mark, the 0.9560, the 0.9520 and the 0.9430 are expected following supports to observe.
EURCHF is also heading towards the five-week long resistance-line mark of 1.1315, which if broken could escalate the pair’s recovery to 1.1360 and the 1.1400 numbers to north whereas 1.1415 and the 1.1455 might question the buyers’ strength afterwards. Assuming the pair’s successful trading beyond 1.1455, the 1.1500 and the 1.1555-60 may gain market attention. If the aforementioned TL pushes the pair downwards, the 1.1260 and the 1.1220 can come-back on the chart. Also, pair’s extended south-run below 1.1220 may make the 1.1180 and the 61.8% FE level of 1.1110 as sellers’ favorites.
Unlike previous two CHF pairs, the GBPCHF has one more barrier, namely the 50-day SMA level of 1.2800, to surpass before confronting the decisive trend-line, viz.1.2840. If at all the pair manage to clear the 1.2840 hurdle on a daily closing basis, the 1.2900, the 1.2980 and the 1.3000 may offer intermediate halts during its rise to 200-day SMA level of 1.3025. Alternatively, the 1.2600 and the 1.2550 cab be considered as adjacent rests if the pair takes U-turn from present levels, breaking which 1.2470-60 horizontal-area comes into play. Should Bears continue ruling momentum beneath 1.2460, the 1.2350, the 1.2265 and the 1.2215 may flash in their radars to target.
Break of nearby TL can’t be taken as a sign of CADCHF’s strength as another resistance-line, at 0.7500, and the 0.7515-20 zone, are still standing tall to threaten the Bulls. Given the prices keep advancing above 0.7520, the 0.7565, the 0.7585 and the 0.7600 can be aimed if holding long position. On the downside, the 0.7435, the 0.7400 and an ascending support-line, around 0.7375, could curb the quote’s immediate declines. Though, pair’s drop below 0.7375 has to conquer recent low near 0.7310 in order to test the 61.8% FE level of 0.7280.
This article was originally posted on FX Empire
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