By Mexgroup.com

EUR/CHF hit new highs

Price rallies and looks unstoppable on the Daily chart because has ignored some important resistance levels, could hit fresh new highs till the end of the days as  the bulls are in full control. We have an amazing upside momentum as the Switzerland currency is trading in the red versus al its rivals, has dropped sharply also versus the greenback even if the USD is under pressure ahead the FOMC.

The CHF dropped aggressively even if the Swiss data have come in better compared to the previous reading period, the UBS Consumption Indicator jumped from 1.32 to 1.38 level, while the Credit Suisse Economic Expectations surged from 20.7 to 34.7 points, reaching the highest level since January 2014. The Euro rallied despite the lack of Euro-zone data, the pair was driven higher only by the technical factors.

EUR/CHF resumed the yesterday’s impressive rally and has managed to jump above the median line (ml) of the minor ascending pitchfork and above the 1.1127 static resistance, the next upside target will be at the upper median line (uml) of the ascending pitchfork and higher 1.1198 long term static resistance.

Could also be attracted by the warning line (WL1) of the major ascending pitchfork, where he could find resistance again.

I’ve said in the previous analysis that the rate maintains a bullish perspective as long as is trading within the minor ascending pitchfork’s body. Is strongly bullish again after the minor consolidation right below the upper median line (UML) and below the median line (ml).

Is very important to see what will happen when the rate will hit the 1.1198 major upside obstacle because a valid breakout above this level will confirm a larger increase in the upcoming months. As you already know, the pair moves in range on the long term, will escape from this extended sideways movement if will stabilize above the 1.1198 level.

Gold slips lower

The yellow metal is trading in the red again and resumes the yesterday’s bearish candle, is going down as the USDX has managed to force the USD to appreciate a little ahead the FOMC.

Price decreased after the failure to reach and retest the outside sliding line (SL) of the major descending pitchfork and now is pressuring the 38.2% retracement level and the warning line (Wl1). Could come even to retest the upper median line (UML) and the sliding line (ascending dotted line) before will climb much higher. Only a drop below the SL and inside the major descending pitchfork’s body will confirm a larger drop in the upcoming weeks. I believe that only the fundamental factors could force the rate to drop sharply.

USD/CAD bloodless

USD/CAD changed little today and is waiting for the FOMC Statement to bring some action, we’ll see how will react after this main event. Price remains under massive selling pressure, the next downside target is at the 1.2460 static level, this represents a long term support. Only a significant accumulation will signal a reversal.

By Olimpiu Tuns

Market Analyst

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