Chart of the Day: EURCHF
EURCHF broke above resistance at 1.10009 on Friday. The bulls are now in charge. This could be a rally back towards multi-month resistance at 1.10635, which is also the Fib 38.2% retracement of the April-September sell-off.
With tier one data coming out of the US this week, including ISM manufacturing and Nonfarm payrolls, we’re taking USD out of the equation and considering the euro against its swiss counterpart CHF.
On Friday EURCHF broke through last week’s resistance at 1.10009. With the bulls seemingly in charge, there is strong momentum behind the move, helped by a better feel to equities and risk sentiment more broadly.
The euro has steam to track higher here, especially as several European indices are trading at record highs. These include the DAX (GER30), FTSE 100 (UK100), and Euro Stoxx 50 (EUSTX50). At the same time, traders want to keep on the short side of the Swiss Franc, avoiding the negative carry trade of going long. Will EURCHF close through multi-month resistance 1.10635 this time around?
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