EUR/CHF Descending Triangle Pattern in Play – Time to Place a Sell Limit
Arslan Butt • 1 min read
EUR/CHF is facing strong resistance around 1.05730, which is mostly extended by a downward trendline on the 4-hour timeframe. The 50 periods EMA is keeping the EUR/CHF pair around 1.0578.
The Euro as a single currency is still staying bearish in the wake of an increased number of COVID-19 cases around the globe. As per latest reports, the cases rose by 3,677 in Germany when compared with Sunday’s 5,936 new infections, showing the 4th-straight drop in the daily rate. The death toll rose by 92.
On the other hand, the declines in oil prices could be recovered during the day ahead mainly due to the risk recovery in the market, as the coronavirus cases are showing some signs of a slowdown in the US, Italy, and Spain over the weekend. The headline figure about manufacturing activity in Germany rose to a 13-month high of 48.0 in February, up from January’s reading of 45.3.
The upward pressure came from improvements in its components, with output, new orders, employment and stocks of purchases each falling at slower rates, as per the official report. A figure below 50 indices contraction, however, the rise from 45.3 to 48.00 represents an easing of the rate of contraction. As a result, the probability of Germany’s industrial production bettering estimates cannot be denied.
EUR/CHF- Daily Technical Levels
Pivot Point 1.0556
EUR/CHF continues to trade below a resistance level of 1.05750. Closing of candles below this level has the potential to lead prices further down towards the next support level of 1.05330. On the higher side, the bullish breakout of 1.0570 can lead the pair towards 1.0590. The RSI and Stochastic remain neutral, as their values are tossing in the bullish and bearish zone. Good luck!