Swiss Franc, CHF, GBP/CHF. CHF/JPY, NZD/CHF – Talking Points
- GBP/CHF weakness reignited, cross falls below key 1.22 level
- CHF/JPY bounces after period of consolidation, above 50 DMA
- NZD/CHF points higher after minting fresh yearly low
GBP/CHF Technical Analysis
GBP/CHF has been exploring lower prices of late having finally mustered up the strength to break below 1.23. Price then gyrated between the psychological barriers at 1.22 and 1.23, ultimately culminating in a break lower to trendline support. This support, which has supported prices since September, has held up yet again. Price revisited 1.23 on a bounce from support, but has since retreated lower. Continued weakness off the back of Wednesday’s session could see yet another test of the aforementioned support. Any near-term reversal may need to see a quick break of 1.23 for momentum to be sustained.
GBP/CHF Daily Chart
Chart created with TradingView
CHF/JPY Technical Analysis
CHF/JPY has certainly cooled off of late after minting a fresh yearly high in early November. For the last few weeks, price has remained constrained in a tight range below 124.00. Wednesday’s session saw price soar to the upper bound of the recent range, but failing to materially breakout. CHF/JPY also traded back above the 50-day moving average on Wednesday, potentially signaling a bullish breakout may be on the cards. Should price be able to trade through key psychological barriers at 124.00 and 125.00, the pair may look to test the 2021 high.
CHF/JPY Daily Chart
Chart created with TradingView
NZD/CHF Technical Analysis
NZD/CHF appears to be pointing higher after putting in a fresh 2021 low to begin December. The November sell off saw price fall back into a descending channel that contained price action for a large portion of 2021. Having bounced from the fresh 2021 low at 0.6173, price may look to test the upper bound of that descending channel. A break above that barrier could see a retest of the 0.382 Fibonacci retracement level at 0.6352.
NZD/CHF Daily Chart
Chart created with TradingView
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— Written by Brendan Fagan, Intern
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