The uncertainty in financial markets, the approach of a new crisis EU summit in Brussels, very singularly manifested on the cross EURCHF yesterday which saw high volatility, ranging between 1.2329 and 1.2428. The impact of S & P warning was quite limited on the course – because the players have already built a deteriorating outlook for the economies of the euro area – but the excitement remains regarding the outcome of the meeting of the ECB and especially the EU summit on December 8 and 9. Unlike yesterday, the Swiss foreign exchange market is quiet, with a cross that has opened up trade to 1.2404 before recording a slight performance which led to 1.2413 at 10 am, Paris time.
EURCHF scenario of the day:
Parity has received the support of the 200 SMA on the daily chart and near resistance now at 1245 , it failed to pass the last two months. Therefore, there is a good chance it will fail again and leans towards 1.22. However, a break could trigger bullish successful many automatic orders that could increase parity. For now, we offer thechannel fluctuation of 1.2350 to 1.2450 , with a central pivot point at 1.2389.
Focus on the fundamentals EURCHF of the day:
From a macroeconomic point of view, the timing of the day is relatively empty and the few European figures should have a negligible impact on the pair. Note that the SNB published its foreign exchange reserves in November, which are strongly folded in the space of one month from CHF 245 040 000 000 229 280 000 000 to CHF. This decrease is mainly due to the maturity of “currency swaps and repo transactions.” Rumors have also reported in recent days,buying euros by the BIS in the financial markets on behalf of the SNB , but neither institution has been willing at this time comment on market rumors. It is common knowledge that the SNB secret love grow in its monetary operations.
For the rest of the week, we expect an increase in volatility at the European Summit Auto so we invite you to place your well stop loss .
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