EUR/CHF Bounces Off 2-Week Lows to Trim Weekly Losses

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The EUR/CHF currency pair plunged on Tuesday to extend weekly losses below 1.0926 but bounced back to trade at around 1.0945 on Wednesday. The currency pair appears to be enjoying strang trendline support at around 1.0920 while a key resistance level can be found at 1.1000.

The pair had drifted to trade in the oversold levels of the RSI indicator in the 60-min chart but Wednesday’s rebound pushed it back to within the normal trading zone.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in both the EU and the Swiss economy. On Monday, Swiss Real Retail Sales for October beat the expected (YoY) change of  -0.4% with 0.7% while the SVME-Purchasing Managers Index for November was slightly better than 48.6 after posting a reading of 48.8.

On the other hand, the EU Markit Manufacturing PMI for November beat the expectation of 46.6 with 46.9. The Italian, French, Spanish, and German Manufacturing PMIs also came out better than expected.

And on Tuesday, the Swiss Consumer Price Index for November came in line with expectations after posting a change of -0.1% (YoY) and (MoM). On the other hand, the EU Producer Price Index for October was in line with (YoY) expectations at -1.9% but beat the (MoM) change of 0.0% with 0.1%.

EUR/CHF Technical Analysis (the 60-min Chart)

Technically, the EUR/CHF currency pair appears to be struggling to surge above 1.1020 following the pair’s latest pullback. The bottom trendline indicates that there could be a slight bullish bias in the market but that is also being tested after the pair fell to bottom at 1.0922 on Wednesday.

Therefore, the bulls will be targeting short-term profits at around 1.0968 or higher at 1.1000 going into the tail-end of the week. On the other hand, the bears will hope that the pullback can continue towards 1.0922 or lower at 1.0898.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within an ascending channel that formed within a descending wedge. This shows that the bulls may be attempting to trigger a long-term trend reversal in their favor.

Therefore, the bulls will be targeting long-term profits at around 1.1057, 1.1108 or higher at 1.1158. On the other hand, the bears will try to retake control and maintain the current trend by targeting profits at around 1.0884 or lower at 1.0817.

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