In the case of Switzerland, the Swiss National Bank (SNB) wants a weak franc announced last week. It is doing this because it wants to boost inflation to rid the country of its deflationary problems that have plagued it for the better part of the past decade Often SNB intervene on CHF. But CHF reached at the top level so market expecting some correction.
German economic slowdown weighing on the Union, ECB’s stimulus more than justified. Last Thursday EU Markit preliminary PMI for April reports got sort. Business activity bounced from March’s collapse, but not enough. And ECB reconsider the need for more stimulus.
Technically EUR/CHF reached at the top level. RSI and Sto.reached over bought level. So market expect some correction. EUR/CHF stuck in to negative trend line. Immediate resistance is at 1.1440 area. If 1.1440 area breaks next target 1.1540 area. 1.1540 area should be tough to break out before minor correction. 1.1540 is another negative trend line area form April 2008. If 1.1540 breaks any how next target 1.1628 and final target 1.1700 area,
On the other hand, immediate support 200 SMA/EMA 1.1370 area. If 1.1370 area breaks and stable next target 1.1320/10 area. If 1.1300 area breaks and stable last target 1.258 area.