CHF : Key Chart Areas

(Wed, 13 Jan 2021).

NZD/CHF TECHNICAL OUTLOOK

The Swiss Franc may be set for further losses against the New Zealand Dollar, as NZD/CHF’s strength stemming from the late December swing low continues to find support from its 9-day Exponential Moving Average. Moreover, trendline support is helping to guide the Kiwi higher against the Franc. Resistance from 2007 appears to be the most imposing obstacle for an extension higher, however.

A break above the aforesaid resistance would likely see prices extend further after defeating such a long-standing trendline. Alternatively, NZD/CHF will be forced to breach below the shorter-term resistance, with a drop to December’s trading range or lower being a scenario that may play out. Assuming longer-dated technical levels are stronger than their shorter counterparts, NZD/CHF may see lower prices in the coming weeks.

CAD/CHF TECHNICAL OUTLOOK

The Swiss Franc is in a fragile position against the Canadian Dollar, with CAD/CHF testing the upper range of a Symmetrical Triangle formed from early 2020. If prices manage to pierce above the pattern, it could fuel an extension higher. The 38.2% Fibonacci retracement from the March to June move may be bolstering resistance, however.

A move lower would see the 20- and 200-day Simple Moving Averages provide a possible area of support, both tracking roughly near the triangle’s midpoint. Still, a decisive break higher or lower may take place over the next month given the short runway left until the convergence of support and resistance. A near-term move lower would provide Swiss Franc bulls with a more neutral position, but the current posture favors more upside potential for the Canadian Dollar.

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