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Forex pairs in this Article » USD/CHF
FXstreet.com (Athens) – The EUR/CHF is trading upwards the last couple of hours – and above the 1.2300 handle – but will the cross manage to sustain its gains amidst the risk-off sentiment?

EUR/CHF again above 1.2300; UBS sees ECB to proceed on rate cut on the 7th November

The EUR/CHF is trading on the downwards level for a second consecutive day but the last couple of hours has managed to remain above the 1.2300 handle – despite the rate cut jitters surrounding ECB – and remains to see in a day of absent Euro zone data if it has the momentum to hold itself above the 1.2300 area. An increasing number of analysts, traders now believe that ECB will cut the rate interest ‘sooner’ than ‘later’; precisely, UBS “expects ECB to cut its interest rates on the 7th November due to yesterday’s muted inflation”. Such a move would probably put the common currency under more pressure, thus would also had a negative impact on the cross.

Technical Aspects on the EUR/CHF

The EUR/CHF has been trading downwards today since the kick off of the Asian trading session but still manages to trade above the 1.2300 level, still well below the confluence of the 200 – daily SMA (1.2312), 50 – daily EMA (1.2322) and the 20 – daily EMA (1.2323) at the area as of 1.2312-1.2323. The cross should first of all overcome the above depicted confluence to trade higher to the barrier as of 1.2387 (the downtrend line from July). On the bear side, a close below the 30-day SMA (1.2307), would probably drag the cross further downwards to the lower 30-day Bollinger Band at 1.2235.
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