EURCHF Heading to Key Support Level

Price has been trading in a bullish channel trend since September of this year. With global markets back in red, EUR fell sharply against the Swiss Frank at the opening of this week. Going forward, I would look closely to the price action of EURUSD 0.03% & EURJPY 0.14% for correlation. In addition, I would also look closely at the performance of global stock markets. The reason being that gains in risker assets like stocks, will be fundamentally bearish for a safe-heaven currency like the Swiss Franc -1.26% .

Exhibits:

Exhibit 1: IG Client Sentiment

Trade Step-ups:

Bullish Reversal: Price rejects a breakout from current support level , look for a move to the topside of the channel. Profit levels to look for are 1.1450, 1.1490 & 1.1530.

Bearish Breakout: Price breaks current support level , look for consolidation below 1.1380. Look for a potential move to test the final support level at around 1.1350.

 

 

 

 

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