Swiss Franc Weekly Overview – Dec. 12 to 17, 2010

The table below shows the Weekly and Daily Supports, Resistances and Risk-to-Reward forecasts obtained with the Forex AI platform calculator, for the major currency pairs that involve the Swiss Franc along with the Euro, British Pound and US Dollar. Technical analysis for this week has been based on Daily charts for EURCHF, GBPCHF and USDCHF, using 20-day Bollinger Bands with 1.5, 2 and 2.5 deviations, 34, 100 and 200-day simple moving averages, trend lines and Fibonacci retracements and extensions.

SUPPORTS AND RESISTANCES

Weekly and Daily Close = December 10, 2010

WEEKLY OVERVIEW – DAILY CHARTS

EUR/CHF

This pair has been on a steady bearish trend since early November, where it didn’t manage to reach the 200-day moving average. We are expecting a retest of the support break and Bollinger bands middle line at 1.3250 with possible push up to SMA100 level, today’s price action had barely made a new low but is back above the line at the moment. Should the recent supports be clearly broken, we would favor an extension down to early September lows (1.2770/1.2750).

GBP/CHF

The outlook for the Pound vs. Swiss Franc is frankly bearish, and price action of today has been heading to the lows, presently trading just below 1.5350. We still could go for a retest at the confluence of SMA34 and Bollinger Bands middle line, but the main expectations are biased towards an extension to next support level (October lows) at 1.5140/1.5100.

USD/CHF

The Swissie broke the rising trend line and last lows today confirming the continuation of a bearish move, reaching and breaking below our first target on next staircase level. It is now trading at 0.9667 and the expectation is biased for a retest of November lows, followed by a consolidation and retest of actual trading level.