We have outlooked several promising Forex pairs and the result can surprise you!
EUR/CHF: the final target
Information is not investment advice
Although EUR/CHF has already made a big leap to the downside, the weekly chart shows that the decline looks unfinished and the pair may slide to even lower levels. Such a scenario is plausible given the European Parliamentary election that is taking place this week and the high probability that the eurosceptics will strengthen their position.
The target levels for selling EUR/CHF are in the 1.1160 area (support line connecting 2018 and 2019 lows; March low; 200-week MA). The fall will be likely as long as the pair is below 78.6% Fibo retracement of March-April advance at 1.1230.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.