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- Friday, 16 October 2009 20:19:30 GMT FX Technical Weekly
- Friday, 16 October 2009 15:38:06 GMT Australian & New Zealand Dollar Outside Days Warn of Reversals
- Friday, 16 October 2009 09:48:52 GMT Euro Finding Offers Ahead of 1.5000; Kiwi Sell Recommendation Issued (Morning Slices)
- Thursday, 15 October 2009 14:32:51 GMT British Pound Surges into Fibonacci Resistance
- Thursday, 15 October 2009 05:24:16 GMT Sterling Finally Plays Catch-Up (Morning Slices)
- Thursday, 15 October 2009 07:56:53 GMT EUR/USD Sell Recommendation Issued @1.5035 (Daily Classical)
- Wednesday, 14 October 2009 14:56:16 GMT US Dollar Slips Lower; Euro Resistance Line at 1.5000 Today
- Wednesday, 14 October 2009 06:46:55 GMT Euro Surge Exposes Psychological Barrier (Daily Classical)
- Tuesday, 13 October 2009 18:19:16 GMT New Zealand Dollar Shows Reversal Characteristics
- Tuesday, 13 October 2009 07:47:43 GMT Euro Double Top Prospects Intact (Daily Classical)
- Monday, 12 October 2009 14:39:22 GMT Canadian Dollar Reaches Measured Objective Above 1.0300
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Friday, 09 October 2009 21:51:30 GMT FX Technical Weekly
- Friday, 09 October 2009 08:17:49 GMT British Pound Consolidates, Euro Hints Double Top Against US Dollar
- Thursday, 08 October 2009 14:42:21 GMT Dollar Fear Escalates as Prospect of a Panic Decline Emerge
- Thursday, 08 October 2009 06:28:39 GMT Prospects Fade for USD Bulls (Daily Classical)
- Wednesday, 07 October 2009 14:32:02 GMT Dollar Fights Back-AUD and NZD Reach Early 2008 Prices
- Wednesday, 07 October 2009 06:41:58 GMT Euro Stops Narrowly Averted (Daily Classical)
- Tuesday, 06 October 2009 18:26:25 GMT EUR/GBP Failure at Resistance Provides Scalping Opportunity
The EURCHF has held a broad range over the past three months of trading, and the pair is likely to face increased selling pressures over the near-term as market participants expect the European Central Bank to ease policy further in 2009.
Currency Pair: EUR/CHF
Chart: 60 Min Charts
Short-Term Bias: Bearish
Analysis Update
The EURCHF surged higher during the overnight session to reach a high of 1.5090, but looks to be finding short-term resistance near the 50.0% Fib retracement level. The lack of momentum to push higher suggests that investors remain bearish against the pair, which should lead the pair lower over the near-term. Over the remainder of the week, I anticipate the euro-franc to fill the gap from the 120 SMA, and we may see the pair work its way towards the 11/12 low of 1.4716 over the following week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The EURCHF has held a broad range over the past three months of trading, and the pair is likely to face increased selling pressures over the near-term as market participants expect the European Central Bank to ease policy further in 2009. After slipping to a low of 1.4299 on 10/27, the EURCHF snapped back to reach a high of 1.5885 on 12/15, but the sharp pullback from the December high suggests that investors are bearish against the pair. As risk sentiment continues to dictate price action in the forex market, I expect the euro-franc to remain range-bound over the coming weeks, and we may see the pair work its way towards the 120 SMA (1.4910) over the remainder of the trading session. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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