EUR/CHF Upside Breakout in Otherwise Dull Markets
| Action Insight Mid-Day Report 1-11-23 |
EUR/CHF Upside Breakout in Otherwise Dull Markets |
EUR/CHF is providing some excitement in otherwise dull markets today. The cross finally breaks out from the sideway pattern started back in October. Some buying is also seen in Euro against Sterling and Aussie, but it's staying in very tight range against the greenback. Indeed, Euro and Dollar are currently the strongest ones for the day, , followed by Loonie and Aussie. Swiss Franc is the worst, followed by Kiwi and then Yen. Overall, still, most traders should be waiting for tomorrow's US CPI before taking a larger bet. Technically, one focus is now on 1.1265 minor resistance in GBP/CHF, if selloff in CHF intensifies. Break there will argue that the corrective pattern from 1.1574 has completed with three waves to 1.1094, and bring retest of 1.1574 high. But of course, as EUR/GBP is also on the verge of breaking through 0.8876 resistance, GBP/CHF might be capped if Sterling is under similar pressure against Euro. In Europe, at the time of writing, FTSE is up 0.63%. DAX is up 0.93%. CAC is up 0.89%. Germany 10-year yield is down -0.0905 at 2.220. Earlier in Asia, Nikkei rose 1.03%. Hong Kong HSI rose 0.49%. China Shanghai SSE dropped -0.24%. Singapore Strait Times rose 0.226%. Japan 10-year JGB yields dropped -0.0062 to 0.506. |
EUR/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9883; (P) 0.9899; (R1) 0.9922; More.... EUR/CHF's break of 0.9953 resistance finally confirms resumption of whole rise from 0.9407. Notable support from 55 day EMA is a bullish sign. Intraday bias is back on the upside. Further rise should be seen to 61.8% projection of 0.9407 to 0.9953 from 0.9720 at 1.0057, which is close to 1.0072 medium term fibonacci level. On the downside, below 0.9896 minor support will dampen the bullish case and turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | AUD | Retail Sales M/M Nov | 1.40% | 0.70% | -0.20% | | 00:30 | AUD | CPI Y/Y Nov | 7.30% | 7.20% | 6.90% | | 05:00 | JPY | Leading Economic Index Nov P | 97.6
| 98.8 | 98.6 | | 09:00 | EUR | Italy Retail Sales M/M Nov | 0.80% | 0.20% | -0.40% | | 15:30 | USD | Crude Oil Inventories | -2.0M | 1.7M |
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