Euro this week loses to the franc (EUR/CHF) and tests the key support area in the region of 1,1182. As can be seen in the weekly chart below, this level in the past year twice stopped sellers from further expansion.

EURCHF Weekly

Successfully closing the weekly quotations at 1,1182 would open the way for a deeper reduction, where the nearest key support is visible around the level of 1,1000. Otherwise, a rebound awaits us and its conditions should be analysed from a daily perspective.

The EURCHF daily chart shows a dynamic fall in quotations after passing the support of 1,1306. Yesterday the price closed at 1,1182, but today it is above this level. If today’s closing takes place above support, the chance of a rebound will increase.

EURCHF Daily

A potential correction is all the more likely as the quotations have moved significantly away from the average channel EMA 10/20. Adding to this an important area of support, it would be unreasonable to take a short position now.

In the event of a rebound, the nearest support zone is between the averages. On the other hand, the horizontal level is close to 1.1253. In the case of trading in pairs with the Euro, it is worth noting the data from the German labour market, which we will know 5 minutes before 10 o’clock.

Join us in our new group for serious traders, get fresh analyses and educational stuff here: https://www.facebook.com/groups/328412937935363/

Leave us a comment!

Ransquawk