Yahoo Finance Swiss Franc Tries To Recover
New week starts with the strengthening of the Swiss Franc but the whole February is so far pretty bad for this currency. CHF is currently on the bearish territory on almost all pairs, with the further negative outlook on the future.
Let’s look at the USDCHF first. Here, we do have a very handsome inverse head and shoulders pattern. Formation is already active, as the price broke the neckline of this formation and also already tested that line as a closest support. As long as we stay above the orange area, the sentiment is positive.
On AUDCHF, we also have an inverse head and shoulders pattern. Neckline and the mid-term down trendline were already broken. The only obstacle left is the horizontal resistance around 0.661. Price breaking that resistance, will confirm a strong bullish sentiment here.
Now let’s look at the whole Swiss Franc index. Most recent weakness should not be a surprise as the index broke the mid-term up trendline. Current rise should also not be a surprise as the CHFX met crucial, mid-term horizontal support. As long as we stay above, CHF has a potential to develop this bullish bounce but the major long-term sentiment is still negative.
This article was originally posted on FX Empire
