The Euro Gains Against Swiss Franc to Set New 10-Week Highs

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The Euro on Thursday extended the current gainst against the Swiss Franc towards the 1.0700 key level ahead of the EU preliminary CPI for May. The EUR/CHF currency pair made a bullish breakout off a consolidative triangle formation on Wednesday and has since maintained a bullish outlook.

The pair has now ventured towards overbought levels of the 14-hour RSI in the 60-min chart. It is also trading several levels above the 100-hour and the 200-hour SMA lines.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively quiet period in the market. On Monday, the German GDP matched the (QoQ) and (YoY) expectations for Q1 with -2.2% and -1.9%, respectively. Business climate and expectations for May outperformed estimates for may but current assessment came short. On Tuesday, the consumer confidence survey for June matched the expectations of -18.9. 

And on Thursday, the preliminary harmonized index of consumer prices for May came in line with the (YoY estimate of 0.5%. Looking forward, traders will be watching Friday’s preliminary EU consumer price index for May. Fro the perspective of the Swiss Franc, the KOF leading indicator for may will also be coming out on Friday. On Thursday, the Swiss ZEW survey expectations for May improved to 31.3 up from 12.7.

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

Technically, the EUR/CHF currency pair appears to have recently broken out of a consolidative triangle formation. The pair has maintained a bullish outlook in the short-term and this will be exciting to traders.

The bulls will be targeting short-term profits at around 1.0708 or higher at 1.0729. On the other hand, the bears will look to pounce for pullback profits at around 1.0667 or lower at 1.0638.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a sharply descending wedge. This indicates a long-term bearish bias in the market sentiment. The pair has recently rebounded to surge in between the 100-day and the 200-day SMA lines.

The bulls will be looking to extend the current rebound towards 1.0771 or higher at 1.0870. On the other hand, the bears will look to retain long-term control by targeting profits at around 1.0698 or lower at 1.0508.

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