EUR/CHF chart on Trading View used for analysis
- EUR/CHF edges lower from session highs at 1.1343, finds stiff resistance at 21-EMA.
- Germany September 2018 Zew Current Conditions increase to 76 balance (fcast 72 balance) Vs Prev 72.6 balance.
- Germany September 2018 Zew Economic Sentiment increase to -10.6 balance (fcast -14 balance) Vs prev -13.7 balance.
- Improved Zew investors sentiment is likely to keep the Euro buoyed. Focus now on Thursday’s ECB meeting.
- Technical indicators have also started gaining some positive momentum. RSI and Stochs have rolled over from near oversold levels.
- We also evidence bullish divergence on RSI and Stochs which adds to the bullish bias.
- Break above 21-EMA finds next immediate resistance at 23.6% Fib at 1.1377 ahead of 1.1475 (converged 50-DMA and trendline).
- On the flip side, break below 5-DMA to see resumption of weakness.
Support levels - 1.1264 (5-DMA), 1.1185 (Trendline)
Resistance levels - 1.1336 (21-EMA), 1.1377 (23.6% Fib), 1.1475 (converged 50-DMA and trendline)
Recommendation: Good to go long on breakout at 21-EMA, SL: 1.1260, TP: 1.1375/ 1.1475
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 4.58145 (Neutral), while Hourly CHF Spot Index was at 10.3909 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
