6 Feb 2014
EUR/CHF has stalled at 1.2230; all eyes on ECB
FXStreet (Moscow) - EUR/CHF started the day on a positive note, moving from the opening level of 1.2224 to the current intraday high of 1.2236 where the bullish momentum is faded so far.
EUR/CHF is waiting for signals from ECB
EUR/CHF has been pretty choppy lately, but it is still obvious that the cross is moving within the long-term downside trend. Having tested the lows at 1.2185 at the start of the week, it retraced higher only to continue its inglorious slump, should the ECB sound too dovish today. The Switzerland publishes a number of important economic reports today, namely, the consumer sentiment indicator and trade balance. The later may show the Swiss trade position deteriorated in December. This will make SNB quite unhappy and put some pressure on the cross. But the true risk event for today is the ECB monetary policy decision. Many investors believe that the central bank will leave its rate unchanged this time, but hint at possible actions aimed at taking the deflationary processes under control. In this case EUR may fall victim of a violent sell-off across the board. Consequently, EUR/CHF will be pressured down also. Keep an eye at the support level of 1.2200, once broken the downside may accelerate to 1.2155. The upside is likely to be limited by 1.2254.
What are today’s key EUR/CHF levels?
Today's central pivot point can be found at 1.2224, with support below at 1.2212, 1.2194 and 1.2182, with resistance above at 1.2242, 1.2254 and 1.2272. Hourly Moving Averages are bullish, with the 200SMA at 1.2237 and the daily 20EMA at 1.2266. Hourly RSI is neutral at 60.
EUR/CHF is waiting for signals from ECB
EUR/CHF has been pretty choppy lately, but it is still obvious that the cross is moving within the long-term downside trend. Having tested the lows at 1.2185 at the start of the week, it retraced higher only to continue its inglorious slump, should the ECB sound too dovish today. The Switzerland publishes a number of important economic reports today, namely, the consumer sentiment indicator and trade balance. The later may show the Swiss trade position deteriorated in December. This will make SNB quite unhappy and put some pressure on the cross. But the true risk event for today is the ECB monetary policy decision. Many investors believe that the central bank will leave its rate unchanged this time, but hint at possible actions aimed at taking the deflationary processes under control. In this case EUR may fall victim of a violent sell-off across the board. Consequently, EUR/CHF will be pressured down also. Keep an eye at the support level of 1.2200, once broken the downside may accelerate to 1.2155. The upside is likely to be limited by 1.2254.
What are today’s key EUR/CHF levels?
Today's central pivot point can be found at 1.2224, with support below at 1.2212, 1.2194 and 1.2182, with resistance above at 1.2242, 1.2254 and 1.2272. Hourly Moving Averages are bullish, with the 200SMA at 1.2237 and the daily 20EMA at 1.2266. Hourly RSI is neutral at 60.