USD CHF Forecast. The USDCHF currency pair is often called ‘The Swissie’. The Swiss Franc is the last Franc still in issuance in Europe. CHF is shorthand for ‘Confoederatio Helvetica’ Franc, and represents the economy of the neutral nation situation in the center of Europe. Switzerland has long been a key banking center for customers around the world, and the secrecy with which they maintain their banking operations has made them one of the more desireable locations for storing cash. This has helped to bring considerable strength to the Swiss Franc, pressuring exporters from the nation.
When the European Debt Crisis enveloped the continent, massive inflows into Swiss Francs made the situation worse until eventually the Swiss National Bank (SNB) created a peg to the Euro at a rate of 1.2 Swiss Francs for every 1 Euro. If the EURCHF currency pair fell below 1.20, the SNB proposed to sell CHF and buy EUR to support the 1.20 floor.
On the updated chart of USDCHF we see price making a sharp and strong recovery, probably as an indication for a low in place.
If that is the case, then recent big three wave pattern to the downside is completed as a contra-trend move wave E as part of a triangle correction, therefore more gains may follow in days, even weeks ahead. However, pullback in wave two is expected to show up before uptrend may extend even higher.
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USDCHF Technical Analysis : Consider Small Long Positions
– USDCHF has been in a downtrend since the start of 2017 but is threatening to break out to the upside.
– Another positive signal is a climb above the 20- and 50-day moving averages.
USDCHF has been falling since the beginning of 2017 but in recent days has moved to, and briefly just above, the trendline marking the upper limits of the downward channel. This suggests that a break to the upside is now possible and that small long positions should be considered.
A positive near-term outlook is also suggested by the climb in the price above the 20- and 50-day moving averages as a more positive trend has developed over the last couple of weeks.
If a sustained break does occur, a plausible target could be the January 3 high close to 1.0330, a level also reached on December 15 last year and on November 27, 2015. On the downside, the 50- and 20-day moving averages provide support at 1.0037 and 0.9991 respectively, while parity itself could provide psychological support. A stop could therefore be placed around 0.9950 to prevent further losses if those supports fail to hold.
USD CHF Forecast Setup Chart H4 & Signals 13-04-2017
USD CHF Forecast.