steve.jarvis's picture

Swiss Franc shake-out at risk of persisting for a number of weeks yet

Just three weeks ago, the Swiss Franc was one of the strongest trending major Currencies, only bettered by the US Dollar & Pound Sterling.  Since then, there has been a significant shake-out which has seen it slide down our medium-term Currency rankings.

Although there has been a minor bounce for the Swiss Franc over recent days, which may initially extend further, we see the risk of a return to multi-week weakness thereafter.  The trend for the Swiss Franc is particularly weak against the US Dollar & Pound Sterling and at the current time, it is against these two where we see the risk of the largest additional falls over coming weeks.

The longer-term trend, as defined by the 260 day (1 year) moving average, is generally still positive for the Swiss Franc against most of the other majors.  Such is the strength of the short-term bearish trend, that as yet it seems too soon to be talking in terms of impending lasting lows and more likely of continued weakness.  In some cases we see the aforementioned longer-term uptrend being breached. 

A selection of Swiss charts are shown below,  all with the Swiss Franc on the left side of the quote (opposite to how a number of crosses are most commonly quoted), as this brings homes the performance and trend for the Swiss currency.  The long-term (260 day / 1 year) moving average is in blue.  The red & green lines represent the 22 & 65 day (1 & 3 month) lines.  

From left to right.  CHF/USD                                                  CHF/GBP                                                                 CHF/EUR

 

 

 

 

From left to right.  CHF/JPY                                                  CHF/SEK                                                                 CHF/AUD

 

 

 

 

 

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