Loading...
by Darius Anucauskas

EUR/CHF – Technical Outlook

Yesterday, EUR/CHF traded north yesterday as the market shifted back to “risk on”. The pair managed to take out a strong area of resistance at 1.1660 and then made its way towards levels last seen in May. Overall, the pair continues to trade above the short-term upside support line, drawn from the low of the 29th of May. All these put a positive spin on the near-term outlook and thus, we would expect to see EUR/CHF traveling higher again.

Because of the reasons mentioned above, we are sticking to the upside for now, until we see a break of the aforementioned support line. We can see that EUR/CHF is currently stuck between the 1.1685 and the 1.1710 levels. The last proved itself as good resistance yesterday. If the pair makes another attempt to test the 1.1710 barrier, a break of it could lead towards the 1.1770 area, marked by the high of the 22nd of May.

That said, we cannot exclude the possibility of EUR/CHF moving towards the 1.1660 hurdle, which acted as resistance just a few days ago. The rate could bounce back up from that level. As mentioned before, we will class any move lower, which stays limited above the upwards moving trendline, as a correction.

Alternatively, if we do see a break of the short-term upside support line, then we could start examining the case of a trend reversal. Below that trendline lies a key area of support at 1.1550, a break of which could open the path to the 1.1505 level, marked by the low of the 27th of June.

2018.07.13 EURCHF 240 Logo

Disclaimer:

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 Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers 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 analyzes 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 analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT