|

EUR/CHF advances to new 5-week tops, approaches 1.0800

  • EUR/CHF extends the weekly rebound to the 1.0780 area.
  • Persistent risk-on sentiment weighs on the safe haven CHF.
  • US Industrial/Manufacturing Production, Fed’s Beige Book next on tap.

The generalized improvement in the risk complex is putting the safe haven universe under extra downside pressure and pushes EUR/CHF to fresh multi-week highs around 1.0780 on Wednesday.

EUR/CHF prints monthly tops

Following the drop to monthly lows in the 1.06 neighbourhood at the end of last week, EUR/CHF managed to regain composure and is now approaching the 1.0800 mark, up for the fourth session in a row so far.

Increasing inflows into the risk-associated space have been sustaining the nearly 2-cent recovery in the cross. In fact, optimism over a potential vaccine to finally eradicate the coronavirus pandemic plus hopes of a ‘V’-shaped recovery in the global economy have lifted the morale among investors, morphing into extra legs to stocks and other riskier assets.

In the docket, the US calendar deserves all the attention in light of releases of Industrial/Manufacturing Production figures, the NY Empire State index, Capacity Utilization and the Fed’s Beige Book.

Further out around the Swiss franc noted speculators added gross shorts to their CHF positions, taking the net longs to 2-week lows during the week ended on July 7 according to the latest CFTC Positioning Report.

EUR/CHF significant levels

As of writing the cross is gaining 0.63% at 1.0782 and a surpass of 1.0818 (23.6% Fibo of the May-June rally) would expose 1.0915 (2020 high Jun.5) and then 1.1033 (monthly high Dec.13 2019). On the other hand, the immediate support is located at 1.0735 (200-day SMA) ahead of 1.0644 (55-day SMA) and finally 1.0601 (monthly low Jul.10).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD keeps the bid bias just over 1.1800

EUR/USD has started the week on a positive foot, hovering around the 1.1800 region in the latter part of Monday’s session. The pair’s recovery comes on the back of a decent decline in the US Dollar, as investors keep their attention on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.