The new week starts with a stronger Swiss franc, despite the fact that February has been difficult for the currency thus far.
CHF is currently on the bearish territory on almost all pairs, with a further negative outlook in the future.
USD/CHF: We do have a very nice inverse head and shoulders pattern. The formation is already active, as the price broke the neckline of this formation and also already tested that line as the closest support. As long as we stay above the orange area, the sentiment is positive.
We also see an inverse head and shoulders pattern on AUD/CHF. The neckline and the mid-term down trendline were already broken. The only obstacle that remains: the horizontal resistance around 0.661. If the price breaks that resistance, it will confirm a strong bullish sentiment here.
Bottom Line
Most of the recent weakness in the Swiss franc index should not be a surprise as the index broke the mid-term up trendline. A current rise should also not be a surprise as the CHFX met crucial, mid-term horizontal support. As long as we stay above this, the CHF has the potential to develop this bullish bounce but the major long-term sentiment is still negative.