Will EUR/CHF exit its sideways range soon?

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.

79.07% 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

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD falls toward 1.20 as the dollar gains further ground

EUR/USD is under pressure as the dollar gains ground across the board, amid a damp market mood. The euro fails to benefit from the European regulators' decision to reinstate the J&J vaccine.


GBP/USD remains pressured below 1.3950 amid mixed UK data

GBP/USD is trading below 1.3950, extending the pullback from its seven-week highs. The dollar benefits from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.


Gold likely to face stiff resistance near $1795-$1800, focus on yields

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave.

Gold News

Binance needs to breach this crucial supply barrier to set up record levels again

Binance Coin price shows a short-term rejection around the supply zone’s upper layer at $594.32. A close above the said level is a must if BNB bulls want to scale to new highs. Supply distribution shows that whales holding between 100,000 to 1,000,000 BNB are accumulating.

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

Bank of Canada is expected to leave its policy unchanged at 0.25%. Investors await adjustments to BoC’s asset-buying program. USD/CAD is likely to react more significantly to a dovish surprise.

Read more