- EUR/CHF supported by a bullish Draghi, signals a potential bottom.
- Price rose above key technical level suggestion more gains ahead.
The euro is rising for the second day in a row against the Swiss franc and reached the highest level since late August. After moving during days in a range, EUR/CHF broke today to the upside, extending the recovery from the lowest level in 13 months it reached September 10.
The pair rose on the back of yesterday’s comments from ECB President Draghi that he sees inflationary pressures rising alongside wages. He sounded bullish in the Eurozone inflation outlook and boosted the euro. In contrast, last week, the Swiss National Bank lowered its inflation forecast for 2019 and 2020. Also, some stability regarding the Turkish lira and optimism about the Italian budget added support to the euro versus the Swiss franc.
EUR/CHF Levels to watch
The pair today climbed from 1.1325 to 1.1381, breaking the key 1.1330/40 resistance that now could be seen as the immediate support. As of writing, EUR/CHF trades at 1.1355, off highs but still headed toward the highest close since August 28.
A consolidation around current levels would signal more gains ahead. To the upside, above 1.1380 the next resistance might be seen at 1.1405/10 and then at 1.1450. A slide back below 1.1300, would signal that bearish pressures still persist.
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