ONLINE FOREX BROKER
2022-12-20 • Updated
EURCHF is a rare cross pair that is nonetheless very interesting both from the technical and fundamental point of view. Let’s throw a strategic look at it to see what we may expect in the nearest future.
Not going too far back into the past, we can distinguish three periods of performance in EUR/CHF.
The first period (marked “1”) is the time when the Swiss franc was pegged to the euro. The price was flat at 1.2050 most of the time. A plunge like never before marks the end of this period – Swiss financial authorities decided to unpeg the franc from the euro.
The second period (marked “2”) roughly corresponds to 2015-2018. During those years, EUR/CHF has been mostly rising. It peaked exactly at 1.2050 and bounced downwards.
The third period starts with the bounce from the strategic resistance of 1.2050 and goes into the present moment. EUR/CHF basically undid all the gains it did in the second period – now, it is roughly where it was shortly after the drop when the unpeg took place.
So is it going below the support of 1.0520? Unlikely – the Swiss economy depends on European buying. Expensive CHF will demotivate the outside Europeans to buy what Switzerland has to offer – that’s why the Swiss National Bank has been so preoccupied lately to not let CHF appreciate too much. “Too much” means EUR/CHF going below 1.0520: we can see this strategic support as solid ground. For this reason, in the mid-term, EUR/CHF may approach and even dip below this mark, but in the long term the possibility that it will go significantly lower is not that big. For this reason, expect a strategic bounce upwards, which may have already started. In the end, the channel 1.0520 – 1.2000 may well turn out to be a multiyear sideways movement zone where the SNB is trying to keep the CHF.
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
The oil prices rally and world central banks’ dovish monetary policy caused by the Covid-19 pandemic were the main reasons for current inflation growth…
Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
