EURCHF Fundamental Analysis – June 24th 2019

A light economic calendar to start the last trading week of June will have forex traders focused on the rise in tension between the US and Iran, with the US announcing more sanctions. This has pressured oil prices higher at a time the global economy is slowing down which will further pressure consumers. The Euro started to retrace its losses against the Swiss Franc caused by dovish commentary out of the ECB after economic data showed signs of stabilizing. Today’s German IFO data will drive price action throughout the trading session, but expectations call for a further deterioration. How will this morning’s release impact your forex trading account and the EURCHF?

Here is the key factor to keep in mind today for Euro trades:

• German IFO: The German IFO Business Climate Index for June is predicted at 97.5. Forex traders can compare this to the German IFO Business Climate Index for May which was reported at 97.9. The German IFO Current Assessment Index for June is predicted at 100.3. Forex traders can compare this to the German IFO Current Assessment Index for May which was reported at 100.6. The German IFO Expectations Index for June is predicted at 94.6. Forex traders can compare this to the German IFO Expectations Index for May which was reported at 95.3.

The Swiss Franc enjoyed string bullish momentum as it’s economy is on track to outperform and the currency attracted safe haven bids from forex traders. A short-covering rally in the EURCHF has emerged, but how long will it last? Can it push price action above its next resistance level? The rise in tensions between the US and Iran and the US and China are causing forex traders to seek safe haven currencies, but will this trend result in a sustainable rally in the EURCHF? Today’s fundamental analysis will explore where price action could be headed over the next few trading sessions.

Here is the key factor to keep in mind today for Swiss Franc trades:

• Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of June 21st were reported at CHF579.2B and Swiss Domestic Sight Deposits were reported at CHF469.5B. Forex traders can compare this to Swiss Total Sight Deposits for the week of June 14th which were reported at CHF578.5B and to Swiss Domestic Sight Deposits which were reported at CHF467.6B.

Should price action for the EURCHF remain inside the or breakout above the 1.1080 to 1.1150 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.1115
• Take Profit Zone: 1.1310 – 1.1385
• Stop Loss Level: 1.1065

Should price action for the EURCHF breakdown below 1.1080 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.1065
• Take Profit Zone: 1.0920 – 1.0985
• Stop Loss Level: 1.1115

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