Since the SNB has pegged the EURCHF and traders have kept the price pinned against that level, the USDCHF is more or less the inverse of the EURUSD. The same is true from a technical perspective.
On the daily chart the price is currently testing/moving above the high for the year (and above the high from June 1). That level comes in at 0.9770. Staying and closing above this level would be bullish for the pair and give the longs a good feeling going into the weekend.
Looking at the hourly chart, the price (like the EURUSD), bottomed against the 200 hour MA yesterday before surging higher. Today, after consolidating in a narrow trading range, the pair sugred higher post the US employment data. That move has pushed the pair above the topside trend line at the 0.9772 level currently (see chart below). This increases the importance of the 0.9770 area as a key level for the pair (intermediate traders should be encouraged by closing above). Stay above = Bullish. Move below and the longs may look to lighten up a bit.
Fianlly, the 5 minute chart outlines the trend moves in today’s trading. After consolidating for most of the Asian and London morning session, the price has trended post the US employment report. The last leg higher has taken the price above the 0.9770 June 1 high. The 38.2%-50% of that leg higher (i.e., the “Correction Zone”) comes in at 0.9768-73). Like the hourly and the daily, this area around the 0.9770 is key for the pair. Move below and the last buyers at the high may look to cover before the weekend. Stay above and longs feel no pain, shorts feel all the pain.
Overall, the pair is doing alright.
PS. Versus the EURUSD, the 1.2291 area is the equivalent level of the 0.9768-70 area in the USDCHF. If the EURUSD moves above the 1.2291 the USDCHF should be moving below the 0.9768 -70 area.
