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19 Aug 2013
EUR/CHF set to bounce from 7-day lows?
FXstreet.com (Chicago) - EUR/CHF may be set to bounce off 1.2314 weekly lows after cascading at the opening of the American trading session against a stronger Swissy despite rally on Bundesbank comments in Germany earlier in the morning.
Bundesbank comments by Schaeuble indicated the European Union is “on the right path” to recover as Spanish and Italian bond yields are indicative of market stability. The possibility of a less dovish approach was reintroduced as the bank stated the ECB could potentially increase interest rates in case of higher inflation pressure.
Price action indicates an inconclusive support formation around 1.2315 zone as it trades at 1.2319 above 1.2315 (August 9th highs), 1.2300 (August 13th lows) and 1.2290 (August 5th lows) grounds and below 1.2326 (July 17th lows), 1.2335 (August 15th lows) and 1.2347 (July 12th lows) resistances. The pair is reported as slightly bearish by the FXstreet.com trend index on one-hour timeframe analysis with 0.24% daily losses and an EMA20 above current price.
Bundesbank comments by Schaeuble indicated the European Union is “on the right path” to recover as Spanish and Italian bond yields are indicative of market stability. The possibility of a less dovish approach was reintroduced as the bank stated the ECB could potentially increase interest rates in case of higher inflation pressure.
Price action indicates an inconclusive support formation around 1.2315 zone as it trades at 1.2319 above 1.2315 (August 9th highs), 1.2300 (August 13th lows) and 1.2290 (August 5th lows) grounds and below 1.2326 (July 17th lows), 1.2335 (August 15th lows) and 1.2347 (July 12th lows) resistances. The pair is reported as slightly bearish by the FXstreet.com trend index on one-hour timeframe analysis with 0.24% daily losses and an EMA20 above current price.