EUR/CHF Bounces Off Moving Averages on the Daily Chart - Forex News by FX Leaders
The trend is changing for EUR/CHF

EUR/CHF Bounces Off Moving Averages on the Daily Chart

Posted Friday, July 31, 2020 by
Skerdian Meta • 1 min read

EUR/CHF used to trade on a bearish trend for about two years, as safe havens kept climbing due to the US-China trade war. The trade war was keeping the market sentiment negative, pushing safe havens such as the CHF higher, hence the decline from 1.20 during that period.

During this time, moving average were providing resistance, pushing the price lower continuously. The Swiss National Bank (SNB) has been intervening in markets, buying EUR/CHF, but without much success. That was until May 18th, when they intervened again.

This time they succeeded, but it was mainly for the fact that European leaders threw the idea of a coronaviorus recovery plan from the EU. That improved the sentiment for the Euro, which has been trading bullish since then, after this pair bounced form 1.05. The price pulled back down from above 1.09, but climbed back up again. Now it seems like moving averages have turned into support.

We saw another pullback on Tuesday, but the 50 SMA (yellow) and the 100 SMA (green) provided support on the daily chart and now it seemslike EUR/CHF will be heading higher. The real target now is the big round level at 1.10. So, if you want to go long from here, the aim should be around 230 pips, while the stop should be below the 50 SMA.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of