Technical Analysis: USD/CHF

By TraderVox.com

Tradervox.com (Dublin) – The USD/CHF started last week at 0.9498 and declined to 0.9484 before rising to a high of 0.9784 above the resistance line of 0.9783. It then decreased a bit to close the week at 0.9769 more than three cents above. With few Swiss events this week the pair will probably remain on a downward trend.

This week, the Swiss unemployment rate will be released on Monday. This event does not show much movement from month to month. The June reading was at 3.2 percent and it is expected to remain the same for July. The Swiss PPI will be released on Friday at 0715 hrs GMT; the inflation for the country has been below zero for the last two readings which indicates weakness in the manufacturing sector. For July, this trend is expected to change with an increase of 0.3 percent.

Some of the technical lines that are in consideration for the pair include the strongest resistance at 1.0368. The last time for this line to be tested was in August 2010 when the Franc dropped sharply. The next resistance line is at 1.0220 which is followed further down by 1.0136. This line has been firm since September 2010. Next, the November 2010 resistance line at 1.0066 may be tested if the franc weakens.

Parity is the resistance line that has been strong throughout and it gives way to the resistance at 0.9915. The 0.9783 resistance is weak and was tested last week, it has been firm since January but it will be tested again if the dollar continues with its advance.

The 0.9719 has been supportive and has been breached as the pair headed upward. The 0.9584 support has strengthened as the pair is trading at higher levels. The support level of 0.9510 has seen some action in the last two weeks and has turned to a strong support line. Support levels of 0.9412, 0.9317, have been firm in May.

Technical Analysis: USD/CHF

The USD/CHF started last week at 0.9498 and declined to 0.9484 before rising to a high of 0.9784 above the resistance line of 0.9783. It then decreased a bit to close the week at 0.9769 more than three cents above. With few Swiss events this week the pair will probably remain on a downward trend.

This week, the Swiss unemployment rate will be released on Monday. This event does not show much movement from month to month. The June reading was at 3.2 percent and it is expected to remain the same for July. The Swiss PPI will be released on Friday at 0715 hrs GMT; the inflation for the country has been below zero for the last two readings which indicates weakness in the manufacturing sector. For July, this trend is expected to change with an increase of 0.3 percent.

Some of the technical lines that are in consideration for the pair include the strongest resistance at 1.0368. The last time for this line to be tested was in August 2010 when the Franc dropped sharply. The next resistance line is at 1.0220 which is followed further down by 1.0136. This line has been firm since September 2010. Next, the November 2010 resistance line at 1.0066 may be tested if the franc weakens.

Parity is the resistance line that has been strong throughout and it gives way to the resistance at 0.9915. The 0.9783 resistance is weak and was tested last week, it has been firm since January but it will be tested again if the dollar continues with its advance.

The 0.9719 has been supportive and has been breached as the pair headed upward. The 0.9584 support has strengthened as the pair is trading at higher levels. The support level of 0.9510 has seen some action in the last two weeks and has turned to a strong support line. Support levels of 0.9412, 0.9317, have been firm in May.

 

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