SNB may lower the rate
Technical Analysis Summary EUR/CHF: Buy
| Indicator | Nilai | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On a 4-hour timeframe, EURCHF: H4 is in a triangle, which must be broken up before opening a buy position. A number of indicators of technical analysis formed signals for a further increase. We do not rule out bullish movement if EURCHF rises above the upper border of the triangle and the upper Bollinger line: 1.064. This level can be used as an entry point. We can set a stop loss below the Parabolic signal, the lower Bollinger line, the last lower fractal and the moving average line with a period of 200: 1,056. After opening the pending order, we move the stop loss tracking the Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop level (1,056) without reaching the order (1,064), it is recommended to delete the order: the market sustains internal changes that were not taken into account.
Fundamental Analysis -
Good macroeconomic data in Switzerland increase the likelihood of further cuts in Swiss National Bank (SNB) rates. Will EURCHF quotes increase ?
The upward movement means the strengthening of the euro against the Swiss franc. The current SNB rate is -0.75%. The last time it was reduced by 0.25% from -0.5% in January 2015. The Swiss Central Bank regular meeting is to be held on June 17, 2020 and a lower rate of -1% is expected. Switzerland released positive data on foreign trade for April and the labor market for the 1st quarter of 2020. Recall that the ECB rate of 0% looks more attractive than that of the SNB. Eurozone inflation data for May will be released on Friday. The outlook is positive for the euro.