Swiss Franc, CHF, GBP / CHF, AUD / CHF, CHF / JPY – Talking Points

  • GBP / CHF fails 50-day moving average (DMA), bearish trend remains intact
  • AUD / CHF remains tied to channel, price action remains choppy
  • Relative strength of CHF / JPY improving, potential to break above 100 DMA

GBP / CHF technical analysis

For much of 2021, the GBP / CHF pair has been subject to volatile but sustained strength from the Swiss franc. After a strong upward melt in January and February, the pair has remained in a sustained downtrend since the March high. Aside from a brief pause in September, the rise in GBP / CHF was limited by resistance to the downside of the trendline. Price briefly attempted a test this week, but immediately fell to support around 1.2580. In the event of a 1.2580 breakout, a support area near 1.2500 has remained firm in recent months as the last line of defense. Short-term bullish targets continue to be heard trendline resistance, closely followed by the 100-day moving average.

GBP / CHF daily chart

Chart created with TradingView

AUD / CHF technical analysis

Similar to the GBP / CHF cross, the AUD / CHF also experienced a strong downtrend for much of 2021, albeit in a much narrower range. After rebounding in August from annual lows, AUD / CHF retreated below 0.6800, with no clear direction. Despite the constant gyration, prices remained in the well-defined trend channel from the March highs. The pair has recently found support in the form of the 50-day MA and may look to retest the upper limit of the channel in the near term. A break out of the long-term downtrend could see the pair testing a key pivot area near 0.6800 which rejected advances three times.

AUD / CHF daily chart

audchf graphic

Chart created with TradingView

CHF / JPY technical analysis

The recent strength of the Swiss franc has seen the CHF / JPY rebound from recent lows below 118.00. Price action in October maintained a key support area above 119.00 as relative strength increased. Price currently remains limited by the 100-day MA, with ascending trendline support supporting the cross below. If a breakout of 100 DMA materializes, traders could look to the July high above 121.00.

CHF / JPY daily chart

chfjpy chart

Chart created with TradingView

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— Written by Brendan Fagan, intern

Contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

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