The EUR/CHF pushed higher following the ECB rate decision from the previous week and may make another attempt to make a run at the 1.5300 level however, the risk in market sentiment looks to be losing steam, and as the Swiss National Bank pledges to stem the appreciation in the franc, the pair is likely to hold a broad range going forward.
[B]Currency Pair:[/B] EUR/CHF
[B]Chart:[/B] 60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
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[B][U][/U][/B]
The EUR/CHF pushed higher following the ECB rate decision from the previous week and may make another attempt to make a run at the 1.5300 level however, the risk in market sentiment looks to be losing steam, and as the Swiss National Bank pledges to stem the appreciation in the franc, the pair is likely to hold a broad range going forward. After slipping to a low of 1.4299 in October, the EUR/CHF snapped back to reach a high of 1.5885 on 12/15, but the lack of momentum to push back above 1.5540-50 (21.4% Fib) paired with fading demands for higher-yielding assets are likely to keep the pair range bound over the near-term as the economic outlook for the global economy remains bleak. Over the next few hours of trading, I expect the pair to trade along the 120 SMA however, as economists forecast the final GDP reading for the Euro-Zone to show a 1.5% contraction in the economy, a downward revision in the fourth quarter growth reading could trigger increased selling pressures for the pair as the economic docket continues to reinforce a dour outlook for growth and inflation. Nevertheless, an upward revision in GDP should certainly boost the appeal of the euro, and may drive the pair to break above 1.5280-90 (38.2% Fib) to make a run for 1.5540-50 (21.4 Fib) over the remainder of the week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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