EUR/CHF traded lower on Thursday, after hitting resistance at 1.1041. That said, looking at the bigger picture, we see that the pair is still trading within the sideways range that’s been in play since March 5th, between 1.1005 and 1.1118. With that in mind, we will adopt a neutral stance for now.
At the time of writing, the pair looks to be headed towards the lower bound of the range, where a break would confirm a forthcoming lower low and may turn the short-term outlook to negative. The bears may then get encouraged to push the action towards the low of March 1st at 1.0963, the break of which may see scope for extensions towards the inside swing high of February 22nd, at 1.0916.
Shifting our attention to our short-term oscillators, we see that the RSI is near 30, pointing down. It could fall below that line soon. The MACD lies below both its zero and trigger lines, pointing south as well. Both indicators detect downside speed, which increases the chances for the pair to break the lower end of the aforementioned range soon.
The picture will turn positive only if we see EUR/CHF climbing above the upper end of the range, at 1.1118. This will confirm a forthcoming higher high and may initially pave the way towards the high of March 4th, at 1.1152. If the bulls are not willing to stop there, then a break higher may lead the rate towards the 1.1172 zone, defined as a resistance by the high of July 2nd, 2019.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.