EUR/CHF Technical Analysis – EUR/CHF Trading: 2022-02-01

 EUR/CHF Technical Analysis – EUR/CHF Trading: 2022-02-01

EUR/CHF Technical Analysis.

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EUR/CHF Technical Analysis Summary

Buy StopÖ‰ Above 1,045

Stop Loss: Below 1,029

IndicatorSignal
RSIBuy
MACDSell
MA(200)Neutral
FractalsNeutral
Parabolic SARBuy
Bollinger BandsNeutral

 

EUR/CHF Chart Analysis

EUR/CHF Technical Analysis

On the daily timeframe, EURCHF: D1 approached the downtrend resistance line. It must be broken up before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if EURCHF: D1 rises above its most recent high of 1.045. This level can be used as an entry point. Initial risk cap possible below the latest down fractal, low since May 2015, Parabolic signal and lower Bollinger band: 1.029. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1.029) without activating the order (1.045), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Forex – EUR/CHF

Getting ready for the European Central Bank (ECB) meeting. Will the EURCHF quotes continue to rise?

The upward movement means the euro strengthens against the Swiss franc. The ECB meeting will take place on February 3, 2022. Investors do not rule out that the European regulator will make some assumptions about the future tightening of its monetary policy against the backdrop of record inflation. This may be positive for the single currency. In December, European inflation was the highest since the beginning of the 1990s and amounted to 5% y/y. The January figure will be published on February 2, the day before the ECB meeting. We note that no rate hike (0%) is expected, but the chances of ECB tightening are also supported by EU GDP growth. According to preliminary data, in the 4th quarter of 2021 it amounted to +4.6% y/y and exceeded the forecast of +3.8%. In turn, the meeting of the Swiss National Bank (SNB) will not take place soon – on March 24th. His rate is now -0.75%. Inflation in Switzerland amounted to 1.5% y/y in December.

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