Forex Market: EUR/CHF daily trading forecast

Yesterday’s trade saw EUR/CHF within the range of 1.0431-1.0508. The pair closed at 1.0483, appreciating 0.12% on a daily basis and marking a fourth consecutive day of gains.

At 9:38 GMT today EUR/CHF was up 0.07% for the day to trade at 1.0469. The pair broke the daily R1 level and touched a daily high at 1.0526 at 8:00 GMT. It has been the highest level since June 25th, when a daily high of 1.0552 was reported.

Fundamentals

Euro area

Greece accepts creditor demands

Optimism took over the global markets on Friday, as the Greek government made a last-minute decision to accept the majority of demands, which the trio of creditors required from the East European country, in exchange for a bailout package at the amount of EUR 53.5 billion. The government insisted that the long-term debt should be more manageable, so that the country could accelerate its recovery. The Greek proposal encompasses increases in the sales tax, reduction in government spending on pensions and long-term debt restructuring, or measures long-demanded by the trio of creditors. The loan from the European Stability Mechanism will be utilized, in order for the country to meet its debt repayments within the period 2015-2018, the majority of which are to the European Central Bank and the International Monetary Fund.

However, there have been concerns that the potential deal would not mitigate risks. “The deal would still need to be passed through various national parliaments,” Nick Kounis, an economist at ABN Amro Bank NV, wrote in a note. “Even if it is passed, there is a risk that Greece finds it difficult to stick to the program in coming months. The economy looks set for a sharp contraction, which is not the ideal background to be implementing tough measures.”

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0474. In case EUR/CHF manages to breach the first resistance level at 1.0517, it will probably continue up to test 1.0551. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0594.

If EUR/CHF manages to breach the first key support at 1.0440, it will probably continue to slide and test 1.0397. With this second key support broken, the movement to the downside will probably continue to 1.0363.

The mid-Pivot levels for today are as follows: M1 – 1.0380, M2 – 1.0419, M3 – 1.0457, M4 – 1.0496, M5 – 1.0534, M6 – 1.0573.

In weekly terms, the central pivot point is at 1.0430. The three key resistance levels are as follows: R1 – 1.0545, R2 – 1.0639, R3 – 1.0754. The three key support levels are: S1 – 1.0336, S2 – 1.0221, S3 – 1.0127.