The Euro was seen trading lower this week, as the EURCHF pair traded below an important support area. However, the pair is getting close to the intervention levels and which might create a possibility of some action in the short term. I think buying sensibly remains a good option in the short term until the pair is trading above the 1.20 level.
There is a down-move trend line on the hourly chart as can be seen in the chart below. There is also a major resistance around the 1.2065-70 levels, which also coincides with the mentioned trend line. So, if the pair breaks above the highlighted trend line and resistance area and settles above it, then we can enter into a buy trade.
Initial target should be around the 1.2110 level, and final target could be around the 1.2140 level. Stop should be placed below the broken resistance area.
Major events scheduled in the upcoming week
The US dollar once again performed better than any major currencies during this past week. The economic data favored the US dollar, especially against the Euro, as the economic releases in the Euro zone missed the expectations. The EURUSD pair traded lower during this past week, and closed the week after creating a new monthly low. The EURUSD pair traded below the 1.3150 level. One other pair which was worth noting was the EURCHF pair which traded below the 1.2060 level as mentioned above.
Let us look at all major events lined up in the upcoming week.
Sunday – Chinese manufacturing PMI.
Monday – German GDP, German manufacturing PMI, Spanish manufacturing PMI, Italian manufacturing PMI, Euro zone manufacturing PMI, UK manufacturing PMI and Australia’s current account data.
Tuesday – RBA interest rate decision, Swiss GDP, US ISM manufacturing PMI and Australia’s GDP.
Wednesday –German services PMI, Italian services PMI, Euro zone services PMI, Euro zone retail sales, BOC interest rate decision and Australia’s retail sales data.
Thursday – BOE interest rate decision, ECB interest rate decision, US ADP nonfarm employment change data and US ISM non-manufacturing PMI.
Friday –Euro zone GDP, Canadian employment change, US NFP data, US unemployment rate and Canadian Ivey PMI.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
