EUR/GBP is eyeing further gains above 0.8975 and USD/CHF remains in a major uptrend above the 0.9875 support level.
EUR/GBP Forecast – Euro Eyeing Further Gains
- The Euro after forming a base around the 0.8880 level against the British Pound started an upside move.
- There was a break above a short-term bearish trend line with resistance at 0.8890 on the hourly chart of the EUR/GBP pair.
- Today in the Euro Zone, the German business sentiment index for Oct 2017 was released by the CESifo Group.
- The forecast was 115.2, but there was an increase from the last revised reading of 115.3 to 116.7.
The Euro after finding bids near the 0.8880 support against the British Pound started an upside move. The EUR/GBP pair made good ground and was able to break the 0.8920 resistance.
The pair also managed to move above the 50% Fib retracement level of the last decline from the 0.9021 high to 0.8885 low. Moreover, the pair succeeded in clearing a short-term bearish trend line with resistance at 0.8890 on the hourly chart.
At the moment, the pair is trading near another trend line at 0.8965. The trend line resistance is also close to the 61.8% Fib retracement level of the last decline from the 0.9021 high to 0.8885 low.
Therefore, there can be a downside reaction from 0.8970 back towards the 0.8930-20 support area. However, the overall trend is bullish for EUR/GBP as long as the pair is above 0.8920.
German Business Climate Index
Today in the Euro Zone, the German business sentiment index for Oct 2017 was released by the CESifo Group. The forecast was slated for no change in the index from the last reading of 115.2.
However, the actual result was above the forecast, as there was an increase in the index to 116.7. The last reading was also revised up from 115.2 to 115.3. The German IFO Current Assessment also posted an increase from the last revised reading of 123.7 to 124.8, whereas the market was looking for 123.5.
The overall result was positive, which could push the EUR/GBP pair higher towards the 0.9000 handle in the near term.
USD/CHF Forecast – US Dollar Remains in Uptrend
- The US Dollar remains in a solid uptrend and looking for more gains above the 0.9915 level against the Swiss Franc.
- There is a major ascending channel forming with support at 0.9880 on the hourly chart of the USD/CHF pair.
The US Dollar gained a lot of momentum recently from the 0.9740 swing low against the Swiss Franc. The USD/CHF pair traded higher and broke the 0.9850 and 0.9900 resistance levels.
The upside move was strong, and the pair is currently following a major ascending channel with support at 0.9880 on the hourly chart. At present, the pair is trading near the channel resistance at 0.9920 and looking for more gains.
Once there is a break above 0.9920, the next stop could be 0.9950. On the downside, the 0.9900 and 0.9880 levels are decent supports and can be considered as buy levels.
Risk Disclosure: By trading a leveraged product your capital is at risk.
The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.
For more information on risks, please read our General Risk Disclosure.