EURCHF Technical Analysis – Buying Dips Favored?

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Key Takeaways

    • Euro traded with a bullish tone against the Swiss Franc, and was seen moving higher.
    • There is a bullish trend line formed on the 4-hours chart of the EURCHF pair, acting as a support area.
    • EURCHF pair settled above an important resistance area of 1.0980 that may later act as a buy zone.
    • The pair is well above the 100 simple moving average (H4), which is a bullish sign.
    • Today, during the European session, the Swiss Trade Balance was released by the Federal Customs Administration.
    • The result missed the mark, as there was a trade surplus of 2,544M in Dec 2015, lower than the expectation of 3,330M.

EURCHF Technical Analysis

The EURCHF pair recently enjoyed decent gains, as it traded above an important resistance area of 1.0980. There is currently a bullish trend line formed on the 4-hours chart, which may act as a barrier if the pair moves down from the current levels.

The 4-hours RSI is above the 50 level, which is a sign that buyers are here to stay and may take the pair higher moving ahead.

EURCHFH4

Buying dips remain a good deal in the short term.

Intraday Support levels for EURCHF – 1.0980 and 1.0960

Intraday Resistance Levels for EURCHF –1.1010 and 1.1040

Swiss Trade Balance

Today, there was nothing much during the European session, only the Swiss Trade Balance was reported by the Federal Customs Administration. It measures the balance amount between import and export and was forecasted to post a trade surplus of 3,330M in Dec 2015.

However, the result missed the mark, as the Swiss trade balance posted a trade surplus of 2,544M. When we look at the imports and exports, then both were lower compare with the last readings. Imports were 13,599M, down from the last revised reading of 15,167M, and the Swiss exports were down and posted a reading of 16,143M.

Overall, there is a high probability that the EURCHF pair may trade higher from the current levels, and if there is a correction, then the 1.0980-60 levels can be seen as a support area.

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