The Euro traded a lot of lower against the Swiss franc recently and is about to challenge the all-important 1.20 peg level. There is a chance of some action in the short term. If we get a break higher and get going, then there is a chance of an upside acceleration moving ahead. I think we should wait and see if the EURCHF pair can break higher or not and then trade accordingly. We must not forget that the SNB reiterated time and again to defend the 1.20 level.
There is an important triangle formed on the 4 hour chart of the EURCHF pair, which acted as a support and resistance on a number of occasions. There is a major resistance formed around the 1.2030 level as well, which might act as a catalyst for the pair. If the pair breaks higher and settles above the triangle resistance area, then we can enter into a buy trade.
Initial target should be around the 1.2065 level, and final target could be around the 1.2090 levels. Stop should be placed below the last low created.
Reviewing recent events and trades
Yesterday, there were a lot of economic releases in the Euro zone, including the German CPI and Italian CPI. There was not much of deviation from the expectation, which was the reason why the Euro was not affected. The EURUSD pair was seen trading in a range. There is a major resistance formed around the 1.2480-1.2500 area, which is acting as a hurdle for the Euro buyers. Similarly, on the downside the 1.2400 area is a major support for the pair in the short term.
Fundamental Outlook for the day
Today, the US retails sales data will be published, which is expected to register a gain this time around. If at all the outcome fails to match the expectation, then the US dollar might correct lower in the near term. One of the pairs which is overstretched is the GBPUSD. The pair recently traded below the 1.5700 support area and is looking for a reason for a correction moving ahead. Let us wait and see whether the US retail sales report can cause moves in the pairs such as EURUSD and GBPUSD or not.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
