As part of today’s free forex signals service we look at the EUR/CHF pair.
The euro is moving sideways against the Swiss Franc in the short term as it tries to accumulate more bullish energy before the next attempt to jump higher. Technically, the price action has signalled that the downside movement should be over and that the pair could be readying to come back higher.
The European Central Bank released the Private Loans indicator, which registered a 4.2% growth in August compared to 4.3% expected. In addition M3 Money Supply rose by 7.9% in August versus 7.8% forecast and compared to 7.6% in July.
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The euro is fighting hard to come back higher even if the Eurozone services and manufacturing data disappointed on Thursday.
Furthermore, the German ifo Business Climate was reported lower at 98.8 points versus 99.0 estimate on Friday.
German election fallout uncertainties lessen
Tomorrow, the German Gfk Consumer Climate may bring life to this pair. A poor showing might lend power to the contention that the growth rate of the powerhouse of the European economy is starting to slow. But uncertainty around the German election although not resolved are likely to end with more of a continuation from the past than a rupture.
From a technical point of view, the EUR/CHF has retested the ascending pitchfork’s lower median line (lml) and now it’s located above the median line (ML) of the descending pitchfork. Pushing higher to retest this line may signal that the pair could try to grind higher over the short term.
The pair found temporary resistance at the weekly pivot point (1.0858). A valid breakout through this upside obstacle may announce potential growth towards the R1 (1.0909). The upside scenario could be invalidated by a drop and stabilization below the lower median line (lml)
Free forex signals – Buy EUR/CHF at 1.0869
My Trading Opinion
Instrument: EUR/CHF
Order Type: BUY STOP
Entry price: 1.0869
Stop Loss: 1.0834
TP1: 1.1.0908
My Risk: 1%
Risk / Reward Ratio: 1:1.1
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