U.S. Session Trade Setup – EUR/CHF Bearish Channel Breakout
|The EUR/CHF is trading at 1.0589, having violated the downward channel at 1.0560. Currently, the pair is holding outside the downward channel, and technically, this should drive buying in the EUR/CHF pair, but the pair is facing an immediate resistance around 1.0609. This particular resistance is extended by triple top pattern, and violation of this can open up further room for buying until 1.0609.
One of the reasons behind a bullish trend in the EUR/CHF is a stronger Euro in the wake of business activity in Germany, which fell sharply in March. Still, the figures were not as bad as economists anticipated.
The headline Flash Germany Composite PMI Output Index dived from 50.7 in the month of February to 37.2, its lowest since February 2009. The preliminary figures were based on replies settled between March 12-23.
The dramatic dip in activity in March was prompted by the service area, where companies highlighted the influence of efforts to contain the spread of the coronavirus disease 2019 (COVID-19).
The EURCHF is consolidating in a narrow trading range of 1.06010 - 1.0520. The pair is trading at 1.0540 after having violated the horizontal support level of 1.0550, which has exposed additional room for selling in the EUR/CHF pair.
For now, the same 1.0550 level is going to work as resistance and violation of which may extend buying until 1.0575. While below EURCHF may head for the next target level of 1.0380 in case of bearish breakout of 1.0510.
EUR/CHF - Trade Signal
Buy Above 1.0569
Take Profit 1.0634
Stop Loss 1.0536
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