Looking Forward to buy a break in EURCHF (extract from Weekly Market Forecast 22nd of February 2014)

The EURCHF is one of the interesting pairs. The pair is now coming closer to a critical support area, as can be seen in the daily chart below. There is also a bullish divergence forming on the daily chart, which is a convincing sign for the upside move. There are also many supports on the way down for the pair. So, I think we should look for short to medium term buy opportunities.

There is a down-move trend line, as plotted on the 4 hour chart shown below. There is also a resistance at around the 1.2200/10 level. If the pair breaks the trend and resistance level and close above the same, then we can jump into a buy trade. Remember, we need the pair to settle above the resistance zone in order for our trade setup to be valid.

Initial target should be around the 1.2280 level, and final target could be around the 1.2310 level. Stop should be placed below the last low created.

Major events scheduled in the upcoming week
There were some mixed sentiments noted in the market during the last week. The US dollar consolidated mostly against some major currencies, and gained against few major currencies like JPY. The data which was released for the US during the last week was mostly on the negative side. However, the FOMC meeting meetings were less dovish, which helped the US dollar to settle down a bit. The biggest loser of the last week was the GBPUSD. The pair declined below the 1.6660/50 area. We need to monitor the key swing level of 1.6600 in the short term for the pair. The EURUSD pair is struggling to gain momentum to the upside, and the 1.3750 level is the key for the pair in the medium term.

Let us look at all major events lined up in the upcoming week.
Sunday – China house prices data.

Monday – German IFO business climate index, Euro zone CPI figures and US services PMI data.

Tuesday – German GDP data, Italian consumer confidence and US CB consumer confidence.

Wednesday – GFK German consumer climate, UK GDP data, US new home sales figures and New Zealand’s trade balance data.

Thursday – Swiss GDP, French consumer confidence, Spanish GDP data, German unemployment report, US core durable goods orders, US initial jobless claims, Tokyo CPI figures and Australia’s ANZ business confidence.

Friday – German retail sales, French consumer spending, Euro zone unemployment data, Canadian GDP, US GDP, Chicago PMI, Michigan consumer sentiment, US pending home sales data and Chinese manufacturing PMI.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, USDJPY, USDCAD, AUDUSD, EURAUD, EURCAD, AUDNZD, USDZAR, OIL and NATURAL GAS.
Get it HERE: Vladimir’s Markets Forecast

Enjoy the weekend friends!