The EUR/CHF continues trading bullish at 1.0776 as stronger Euro is likely to drive EUR/CHF bullish. The demand for safe-haven assets is keeping the CHF supported; however, the technical side of the market is still dragging the EUR/CHF higher. The optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery.
Whereas, the U.K. scientist group’s readiness for a state lockdown of almost two weeks and Global Times’ direct war signals to the U.S., over American diplomat’s visit to Taiwan, also exerted downside pressure on the equity market, which tend to underpin the safe-haven Swiss Franc.
Despite the risk-off market sentiment, the broad-based U.S. dollar failed to achieve any positive traction and trimmed lower on the day as doubts persist over the global economic recovery from COVID-19. The disappointing U.S. employment data witnessed that. Apart from this, another rout in U.S. tech stocks also undermined the U.S. dollar. However, the losses in the U.S. dollar becomes the key factor that kept the pressure on any additional gains in the pair. While, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.05% to 92.927 by 12:48 AM ET (5:48 AM GMT).
Technically, the EUR/CHF is supported over 1.0763 level, and closing of candles above this support level may drive further buying until 1.0785. The MACD and 50 EMA are also supporting an upward trend in the market. Recent bullish engulfing is also supporting the bullish trend in the market. Checkout a trading plan below…
Entry Price – Buy 1.07692
Stop Loss – 1.07292
Take Profit – 1.08092
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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