19/10/22 Daily Forex Strength Weakness Video

Wed 19th October 2022

Today, Our Daily Forex Strength Weakness Video will focus on:

• EURCHF

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

EURCHF Back To Parity?

In today’s video update we focus on one forex pair. The EURCHF will be our focus today as the live forex strength and weakness tables show us that the EUR (S2) on both tables and the CHF (W3) on the trend table and (W2) on the day tables. 

EURCHF has been in a long term downtrend for some time now as the Swiss Franc strengthened significantly. This was down to the Swiss National Bank hiking interest for the first time in a long time and before the ECB. The ECB stalled hiking interest rates which led the Euro to weaken. However, this narrative is changing now with the currencies reversing roles. The ECB is expected to hike by 50-75bps in their next meeting which investors are seeing as a hawkish move. If they continue to plan aggressive hikes this could see the EURO strengthen for longer. 

The monthly chart is showing the price of EURCHF is in a longer term downward trend however, we could be in a retracement phase. This could see the lower time frames form a bullish trend until the price reaches a key resistance, this being the parity level 1.000. The price is currently breaking out of a key high at 0.9800 which could offer opportunities to buyers on the breakout. 

Technical Observations

• The EUR is S2 on tend table and the CHF is W3.
• Price is currently trading below the 200 moving average which could be a target for traders long.
• The monthly chart shows a strong downward trend but in a retracement phase.
• Previous structure lows at parity 1.000 could be the level the price is heading for.
• Price is breaking out of the resistance highs at 0.9800 which could invite opportunities for breakout traders.
• Alternatively, wait for the price to confirm higher highs and look for a higher low entry.