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EUR/CHF Technical Analysis - EUR/CHF Trading: 2020-02-28
EUR/CHF Technical Analysis Summary
Above 1.068
Buy Stop
Below 1.055
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
EUR/CHF Chart Analysis
EUR/CHF Technical Analysis
On the daily time-frame, EURCHF: D1 went up from the downward channel. It is trying to head upward from its minimum since July 2015. A number of technical analysis indicators formed signals for a further upsurge. We wouldn’t exclude a bullish trend if EURCHF rises above its last high: 1.068. This level can be used as an entry point. The stop loss is possible below the lower Bollinger line and Parabolic signal: 1,055. After the opening of the pending order, we move the stop loss after the signals of Bollinger and Parabolic to the next fractal minimum. So, we change the potential profit / loss ratio in our favor. After the transaction, more risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of trend. If the price overcomes the stop level (1,055) without activating the order (1,068), it is recommended to close the position: there are internal changes in the market that weren’t taken into consideration.
Fundamental Analysis of Forex - EUR/CHF
Investors expect a relatively low reduction in ECB rates, which helps strengthen the euro. Will EURCHF quotes rise?
Such a movement means strengthening of the unified European currency against the Swiss franc. According to interest-bearing futures, the likelihood of a 0.1% reduction in the ECB rate at a meeting on July 16, 2020 is over 80%. At the same time, the Fed rate cut is expected to reach up to 0.25% on April 29th. Now the ECB rate is zero, and the Fed + 1.75%. Nevertheless, the difference in expectations of lowering the rates of both regulators caused a noticeable appreciation of the euro. On Friday, new data on inflation and the German labor market will be released, which may affect the euro. The rate of Swiss National Bank (SNB) since March 2015 is negative and now stands at (-0.71%). SNB board member Andrea Maechler said negative rates are absolutely necessary for the Swiss economy, even if they have a painful effect. Thus, the Swiss authorities are struggling with the extreme strengthening of the franc. KOF indicator and retail sales data will be released in Switzerland on Friday.
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