Swissquote Daily Technical Report: EUR/CHF – Persistent selling pressures in place

In Swissquote’s Friday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/CHF (1.20 floor in play) and GBP/USD. To view and download the entire report, click here (PDF).

EUR/CHF: Persistent selling pressures in place

• EUR/CHF has made new lows, confirming persistent short-term selling pressures. The support at 1.2063 (10/12/2012 low) has been breached. Another support stands at 1.2030 (28/11/2012 low). Hourly resistances can be found at 1.2093 (26/08/2014 high) and 1.2121 (15/08/2014 high).

• In September 2011, the SNB put a floor at 1.2000 in EUR/CHF, which is expected to hold in the foreseeable future


GBP/USD: Trying to bounce

• GBP/USD is trying to bounce after its bullish intraday reversal made on 25 August. However, a
decisive break of the hourly resistance at 1.6601 (21/08/2014 high) is needed to suggest weakening selling pressures. Other hourly resistances can be found at 1.6679 and 1.6739. Hourly supports stand at 1.6537 and 1.6501 (25/08/2014 low).

• In the longer term, the break of the key support at 1.6693 (29/05/2014 low, see also the 200 day moving average) invalidates the positive outlook caused by the previous 4-year highs. However, the lack of medium-term bearish reversal pattern and the short-term oversold conditions do not call for an outright bearish view. A key support stands at 1.6460 (24/03/2014 low).


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