European Currencies Continue to Rise
FXOpen
The German elections last Sunday and the postponement of US tariffs on the European Union have contributed to a full-fledged upward correction in EUR/USD, GBP/USD, and USD/CHF. The GBP/USD currency pair tested 1.2700, EUR/USD briefly traded above 1.0500, and USD/CHF sellers broke key support at 0.9000.
EUR/USD
According to technical analysis, EUR/USD is showing the completion of several bullish reversal patterns formed back in January. At present, the price is trading within the key range of 1.0540–1.0520. If EUR/USD buyers manage to hold the price above this level, the pair could continue its rise towards 1.0630–1.0590. A break below 1.0500 may lead to a retest of 1.0450–1.0400.
Today, the following events may influence EUR/USD pricing:
- 10:00 (GMT+2): Germany GfK Consumer Climate Index
- 10:30 (GMT+2): France Consumer Confidence Index
- 16:00 (GMT+2): US Building Permits
USD/CHF
For several weeks, USD/CHF buyers have attempted to strengthen above 0.9200. A retest of this resistance level in early February triggered a sharp pullback and the formation of a "double top" reversal pattern on the daily timeframe. At the start of this trading week, USD/CHF sellers managed to push the price below the base of this formation. If the "double top" pattern is fully realised, the price may decline to 0.8790–0.8740. A reversal of the bearish correction scenario can be considered only after a confident breakout above 0.9000.
In the upcoming trading sessions, the following events may influence USD/CHF pricing:
- 12:00 (GMT+2): Switzerland ZEW Economic Expectations Index
- 18:00 (GMT+2): US New Home Sales
- 20:00 (GMT+2): Speech by FOMC member Bostic
- Tomorrow at 12:00 (GMT+2): Switzerland ZEW Economic Expectations Index
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