- Risk sentiment improved
- EA and US calendar is limited
- EURCHF favors upside risk
Overnight the dollar index (KTM: DXY) was little down to 96.45, paused the rally at the 161.8% Fe (93.16-95.25-93.40). US 10Yer treasury yield rose from 2.86% to 2.87%.
Gold rose from 1160.0$ early Asian low to 1182$, but closed at 1173.80$, flat. Palladium was the leader in the commodity block up by 4.50%, followed by Platinum and Silver up by 1.50% each.
EURUSD: EURUSD has tested the 200MA (Weekly) on Monday’s Asia session and held as the week progress. We believe today the price likely to remain between 1.1430-1.1300 levels. For an intraday trading perspective, the erosion of the 1.1400 thresholds could open to 1.1430 and 1.1450. Supports are at 1.1365 and 1.1350 below these, 1.1300-1.1280 exists.
Read: EURUSD overview
EURCHF: EURCHF is relatively exposed to the risk sentiment. As the risk sentiment is improving we forecast a short-term rally.
The cross manages to hold the area of support defined by the following.
• The weekly pivotal finds at 1.1250-1.1200 (We tweeted on Monday)
• The 500MA finds at 1.1200 coincides with the 100MA (weekly)
• The daily studies turned bullish
Since the daily oscillator has picked up and as the daily study RSI has been turned bullish, rallies are anticipated towards 1.1380-1.1400 ahead of the resistance 1.1440 its 14MA and 1.1480 its 20MA.
Today the cross finally ready to test the resistance at 1.1380-1.1400 if well above 1.1360. Supports are at 1.1315-1.1300, 1.1260 and 1.1200.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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