Swiss Franc Weekly Update - Jan.21 close

EURCHF

Last week the price broke the upper trend line of the bearish daily descending channel continuing forward in its bullish run. Friday ended near the middle line of the weekly Bollinger band and 50% Fibonacci retracement on last swing low, and near the daily SMA100 with the same percentage of correction. I would expect a bounce back to the downside and a retest of broken level 1.2900 with extension to the daily SMA34 and top of the previous channel at around 1.2750. Today’s price opened just below the ascending line and is presently trading at 1.2950. If this level holds as a resistance, the projection target would be around 200 pips below the actual price. However, we could still push a bit higher to reach psychological level 1.3200 near weekly SMA34 and 61.8% Fibonacci retracement, and further to the daily SMA200 at 1.3440 on a longer term view.

GBPCHF

This pair reached the middle line of the weekly Bollinger bands although price kept trading above the upper line of the daily descending channel and contained by 1.5400 resistance level, SMA100 and 61.8% Fibonacci retracement during all week. My views are aimed to a continuation towards the weekly SMA34 at around 1.5750 and further projection to 1.5800/1.5900 to reach and test previous daily highs and SMA200, however today the price has broken to the downside and went back inside the channel, presently trading at around 1.5165/70. I would expect this area of support to hold and at the most we could have a further fall to around 1.5100/1.5070 before continuing the bullish move towards the previously mentioned targets.

USDCHF

On the previous week, the Swissie has been into a consolidation inside the 0.9520/0.9680 range and trading inside a falling wedge on weekly, while daily charts show a pause  after the strong rejection of early January at psychological level 0.9300. I think the pair is building up for a break to the upside aiming to reach parity and previous daily highs at 1.0070, where it will be struggling with a strong resistance area. First bullish target on the short term would be the most recent daily highs and SMA100 at 0.9770/80, expecting a clean break of that level for it to fulfill the continuation to the upside. We are still heavily bearish but it would seem that the pair is slowly bottoming out and initiating a reversal, resistance level 1.0180/1.0200 will have to be watched closely for the longer term approach.