Refer EUR/CHF chart on Trading View
- EUR/CHF has retraced from session highs at 1.1405 and is currently trading at 1.1388 at the time of writing.
- The pair is extending higher for the 4th straight session and eyes immediate resistance at 23.6% Fib at 1.1423.
- Euro edged higher after the US dollar dropped overnight in response to a drop in the UST yields on concern regarding Fed’s policy tightening after Trump's criticism.
- The single currency may not be able to extend gains if the Italian bond yields rise on fiscal concerns.
- Moody's on Monday postponed a possible downgrade of Italy as it extended the period that it has Italy on negative watch.
- Technical indicators are neutral to slightly bullish. Stochs have rolled over from oversold levels and 5-DMA has turned.
- Break above 23.6% Fib will see upside till 21-EMA at 1.1448. Drag till trendline support at 1.1235 possible on break below 5-DMA.
Support levels - 1.1354 (5-DMA), 1.13, 1.1235 (trendline)
Resistance levels - 1.1423 (23.6% Fib), 1.1448 (21-EMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 81.226 (Bullish), while Hourly CHF Spot Index was at -97.524 (Bearish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
