- EUR/CHF capped at 5-DMA at 1.1035, down 0.05% on the day as markets cautious ahead of ECB decision.
- Market expectations of some announcement regarding the ongoing QE programme have been bolstering the pair’s rally in past weeks.
- Technical indicators are neutral for the pair on daily charts. Any disappointment from ECB could be a major blow to the single currency.
- Momentum indicators are at overbought levels and on verge of a rollover. MACD is also showing waning momentum.
- The pair finds strong support by 1H 200-SMA at 1.1024, we see weakness on break below.
Support levels - 1.1024 (1H 200-SMA), 1.1015 (23.6% Fib retrace of 1.0830 to 1.1073 rally), 1.1005 (July 17 low), 1.0965 (20-DMA),
Resistance levels - 1.1036 (5-DMA), 1.1070 (July 18 high), 1.1105 (June 3 2016 high)
Recommendation: Watch out for break below 1H 200-SMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 19.1246 (Neutral), while Hourly CHF Spot Index was at 74.8248 (Neutral) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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