U.S. Session Trade Setup - EUR/CHF Descending Triangle Pattern In Play!
|The EUR/CHF pair continues to trade sideways in a narrow trading range of 1.0650 to 1.0606 while traders await a breakout. The Swiss Francs safe-haven appeal seems to fade following mixed sentiments regarding Chain's Coronavirus.
The focus is now shifting to the U.S. dollar as investors are treating it as safe haven security. The U.S. Labor Department reported that the number of initial jobless claims for the week ended Feb. 15 increased to 210,000 (as expected). The Conference Board Leading Index rose 0.8% on month in January (+0.4% expected). Later today, the Markit U.S. Manufacturing Purchasing Managers' Index for February (preliminary reading, 51.5 expected) and existing home sales for January (an annualized rate of 5.45 million units expected) will be reported.
| Support | Pivot Point | Resistance |
| 1.0646 | 1.0679 | 1.0698 |
| 1.0627 | 1.0731 | |
| 1.0575 | 1.0783 |
The EUR/CHF's bearish trend remains in check as the pair is holding above a long-held support level of 1.0605. On the 4 hour chart, the pair has formed a descending triangle pattern that may drive more selling in the EUR/CHF upon the bearish breakout of 1.0605, and it may lead the EUR/CHF prices towards 1.05700 at first.
EUR/CHF - Trade Signal
Buy Above 1.0600
Take Profit 1.0664
Stop Loss 1.0590
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