Preparing for the speeches of the heads of the ECB and the Fed
Technical Analysis Summary EUR/CHF: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, EURCHF: D1 has come out of the triangle upwards and exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if EURCHF rises above its latest up fractal and 200-day moving average of 1.052. This level can be used as an entry point. Initial risk cap possible below the Parabolic signal and the last 2 down fractals: 1.018. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1.018) without activating the order (1.052), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
Investors do not exclude the European Central Bank (ECB) rate increase. Will the EURCHF quotes continue to rise?
Investors do not rule out an increase in the ECB rate for the first time since March 2016. So far, it is assumed that its increase from the current level of 0% to +0.25% will occur only at a meeting on July 21. This opinion is based on the statement of the head of the ECB Christine Lagarde that the Asset Purchase Program should be completed at the beginning of the 3rd quarter of this year. In the meantime, one more meeting of the ECB will take place before this date (June 9). Theoretically, the European regulator can accelerate the start of tightening its monetary policy. Accordingly, the attention of market participants is riveted to the statements of its representatives. May 17 is expected European Central Bank President Lagarde Speech. If during this speech there are signs of a more rapid tightening of monetary policy, this may help strengthen the euro. It should be noted that many important economic indicators will be published in the European Union this week: GDP, inflation, and so on. The Federal Reserve System (Fed) Chair Jerome Powell Speech will also take place on May 17, which could affect the entire forex market. The meeting of the Swiss National Bank will take place on June 16. No rate increase (-0.75%) is expected yet.