US Session Trade Setup - EUR/CHF Bearish Channel Drives the Pair
|The EUR/CHF is sideways within a broad trading range of 1.0635 - 1.0549, holding mostly below the 50 EMA resistance level, which is likely to trigger more selling in the EUR/CHF pair. One of the reasons behind a slight recovery in the EUR/CHF is the fading demand for safe-haven assets such as gold, Japanese yen, and Swiss Franc.
The recent recovery in the crude oil prices could also be attributed to the White House statement that Trump had spoken with Saudi Arabia's Crown Prince Mohammed bin Salman regarding energy sector prices, which reduces the risk-off sentiments.
If talking about the deadly virus, the fast-spreading coronavirus also weighed on investor risk sentiment. The death losses in Italy due to the virus rose to 631, whereas China's new cases rose for the first time in 5-days as infected individuals arrived from overseas. Consequently, the single currency euro is getting a bearish hit.
|
Support |
Pivot Point |
Resistance |
|
1.0575 |
1.0611 |
1.0646 |
|
1.0541 |
1.0681 |
|
|
1.047 |
1.0752 |
The EUR/CHF is trading at 1.0590, below an immediate resistance level of 1.0590, and below this, we can see further bearish trend continuation until 1.0580 and 1.0550. On the higher side, the EUR/CHF may find resistance around 1.0604 and 1.0620.
EUR/CHF - Trade Signal
Sell Below 1.0610
Take Profit 1.05495
Stop Loss 1.06379
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