EUR/CHF forecast for March 5
On the weekly time frame, we see that the pair managed to reach the level of the moving average MA200 at 1.114380, making a pullback from that level to the current 1.108050. By setting the Fibonacci retracement level, the pair tested 38.2% level at 1.106820. If we look at the previous candlestick, we see that the pullback is half that candlestick, and based on that, we can expect a similar scenario.
On the daily time frame, the Euro is worse today against the Swiss franc, and the pullback has begun. Now we look at where the couple will be able to find support on the chart. If the pullback continues, we can look at moving averages because the pair will soon encounter MA20 and EMA20 and even test psychological support at 1.10000.
On the four-hour time frame, the pair is testing moving averages of the MA20 and EMA20, and we will likely see a continuation of the pullback to better support the chart. To continue the bullish trend, we expect the pair to make a higher low to continue with support towards higher levels.
From the news for these two currencies, we can single out the following: Global activities have maintained renewed restrictions over the winter better than feared. The introduction of vaccines strengthens confidence that restrictions will be lifted in the coming months. The slow introduction of the vaccine in Europe is worrying.
The next negative development for the Swiss franc this month was reducing Italian political risk, which helped reduce the negative risk for the eurozone and euro economy. Prime Minister Draghi is expected to focus on the efficient use of European recovery funds. His appointment will boost optimism about the potential for further useful reforms in the eurozone.
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