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12 Aug 2014
EUR/CHF is not ready for a decisive breakthrough
FXStreet (Moscow) - EUR/CHF took off from the bespoke support of 1.2130 and grinder towards the local resistance of 1.2140 ahead of European opening.
Good retail sales, what’s next?
СHF bulls were happy to know that retail sales in Switzerland grew 3.4% against forecasted growth of 0.3%. Just as it was expected positive data supported CHF buying across the board, while EUR/CHF dipped to its bespoke support of 1.2130. Geopolitical tensions are weakening, but don’t buy into it as the situation is too unstable. Sanctions and counter sanctions, ongoing blame game and no real progress in taking peace to Eastern Ukraine make the cross vulnerable on the back of safe heaven demand. But tread carefully, as traders might use any pretext to take profit on EUR/CHF shorts as the cross is getting closer to the SNB threshold (1.20).
What are today’s key EUR/CHF levels?
Today's central pivot point can be found at 1.2136, with support below at 1.2125, 1.2117 and 1.2106 with resistance above at 1.2144, 1.2155 and 1.2163. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2156 and the daily 20EMA bearish at 1.2153. Hourly RSI is bullish at 59.
Good retail sales, what’s next?
СHF bulls were happy to know that retail sales in Switzerland grew 3.4% against forecasted growth of 0.3%. Just as it was expected positive data supported CHF buying across the board, while EUR/CHF dipped to its bespoke support of 1.2130. Geopolitical tensions are weakening, but don’t buy into it as the situation is too unstable. Sanctions and counter sanctions, ongoing blame game and no real progress in taking peace to Eastern Ukraine make the cross vulnerable on the back of safe heaven demand. But tread carefully, as traders might use any pretext to take profit on EUR/CHF shorts as the cross is getting closer to the SNB threshold (1.20).
What are today’s key EUR/CHF levels?
Today's central pivot point can be found at 1.2136, with support below at 1.2125, 1.2117 and 1.2106 with resistance above at 1.2144, 1.2155 and 1.2163. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2156 and the daily 20EMA bearish at 1.2153. Hourly RSI is bullish at 59.