FxWirePro: EUR/CHF Daily Outlook

Chart - Courtesy Trading View 

EUR/CHF was trading largely unchanged at 0.9890 at around 12:50 GMT. The pair is extending sideways at 21-EMA support, weakness only on break below.

Data released earlier on Monday showed the headline German IFO Business Climate Index climbed to 88.6 in December versus the previous reading of 86.3 and the forecast of 87.2.

Meanwhile, the Current Economic Assessment improved to 94.4 points as against November's 93.1 and 93.5 expected.

The IFO Expectations Index was up to 83.2 in December from the previous month’s 80.0 and against the estimates of 82.0. 

Upbeat data comes on the back of hawkish signals from the European Central Bank, indicating that it will need to raise rates further to tame inflation.

The single currency, however, fails to benefit from upbeat German IFO survey. A positive risk tone undermines the safe-haven CHF and lends some support.

Major Support Levels: 

S1: 0.9859 (21-EMA)

S2: 0.9828 (55-EMA)

Major Resistance Levels: 

R1: 0.9913 (Upper BB)

R2: 0.9966 (200-DMA)

Summary: EUR/CHF is likely to extend sideways at 21-EMA support. The pair finds strong support at daily cloud. Scope for upside remains as long as pair holds above 21-EMA and daily cloud.