EURCHF Analysis: Preparing for the publication of economic statistics and the ECB meeting

April 28, 2020

By IFCMarkets

Preparing for the publication of economic statistics and the ECB meeting

The upward movement of this currency pair means the weakening of the Swiss franc against the euro. Market participants do not rule out that a significant increase in deposits may mean the Swiss Central Bank is inclined to take some measures to limit the further strengthening of its currency. The total amount of SNB deposits reached 650 billion Swiss francs. Let us recall that on April 23, EURCHF came close to the minimum again since July 2015. Changes in the SNB rate (-0.75%) are not yet expected. It is much lower than the ECB’s rate (0%). Note that the next meeting of the European regulator will take place on 30 April. Eurozone GDP data for the 1st quarter of 2020 and the preliminary inflation for April will be published at the same time.
All this can support the euro. This week, KOF retail sales and indicators of business activity will come out in Switzerland.

IndicatorVALUESignal
RSIBuy
MACDSell
MA(200)Neutral
FractalsNeutral
Parabolic SARBuy
Bollinger BandsBuy

 

Summary of technical analysis

OrderBuy
Buy stopAbove 1,058
Stop lossBelow 1,048

Market Analysis provided by IFCMarkets