Potential buy opportunity for the EURCHF (extract from today’s Market Forecast)

Today, we will discuss about the EURCHF, and related trade opportunities. I think the pair may present us an excellent buy opportunity in the short term. The pair is trading around the major support levels, as can be seen in the daily chart below. We want to avoid any major trade setups just ahead of the fed interest rate decision, so trading a cross currency is a good idea if you want to avoid any major risk, in my opinion.

Looking at the 4 hour chart of EURCHF, there is a down-move trend line and important resistance at around the 1.2215/20 level, as shown in the chart below. If the pair clears this resistance, and close above it, then we can enter into a buy trade. Remember, only a double break will trigger our buy entry.

Initial target could be around the last high of 1.2240, and final target could be around the 1.2280/90 level. Stop should be placed below the 1.2200 level.

Reviewing yesterday’s events and trades
Yesterday, a lot of fundamental data was released in the European session. French manufacturing and services PMI, German manufacturing and services PMI, Euro zone composite manufacturing and services PMI, Italian trade balance data and Euro zone trade balance data were released. Overall, the outcome was positive, except the French data. French manufacturing PMI fell to 47.1, and services PMI fell to 47.4. This means that the French economy is still struggling. The EURUSD traded as high as 1.3798 after the release. Later, the NY empire state manufacturing index, and US industrial production data were released. The NY empire state manufacturing index missed the expectation of a rise to 4.75, and the US industrial production jumped from 0.1% to 1.1%. The US dollar managed to recover some losses after the data release.

Fundamental Outlook for the day
Today, the UK’s and Euro zone’s inflation data was released in the European session. The outcome was mixed, and as a result, there is no major move by the EURUSD and GBPUSD until now. Later in the NY session, the US inflation and current account data will be released. This particular event may cause a lot of movements later during the day. Let’s wait and see how the market reacts to all these major economic releases. I expect some wild swings as we come closer to the Fed interest rate decision.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, EURJPY, GBPJPY, AUDUSD, AUDNZD and GBPCAD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!