EUR/CHF chart on Trading View used for analysis
- EUR/CHF halts downside, edges higher to trade 0.16% higher on the day.
- Upside remains capped at daily cloud top at 1.1449, intraday bias neutral to slightly bullish.
- We see bearish divergence on Stochs which keeps scope for bearishness in the pair.
- Further the pair has formed successive spinning top and doji formations at highs.
- Break above 38.2% Fib at 1.1498 will see resumption of upside. Scope then for test of 200-DMA at 1.1596.
- On the downside, break below 21-EMA at 1.1391 will see dip till 1.1345 (trendline).
- Italy's government late Monday approved a draft budget law, under which the budget deficit is set to widen to 2.4% of the gross domestic product, in defiance of EU rules.
- Italy-German yield differentials could rise in the EUR-negative manner. Also, focus on German Zew survey for further direction.
- Below forecast German Zew surveys, scheduled for release at 09:00 GMT, could further dent the single currency.
Support levels - 1.1402 (55-EMA), 1.1391 (21-EMA), 1.1345 (trendline)
Resistance levels - 1.1469 (110-EMA), 1.1498 (38.2% Fib)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
