Daily Market Insights



EURO holds sideways

German Chancellor Angela Merkel's conservative party won an election in Saarland State against the Social Democrats on Sunday. Merkel's victory was a huge blow to the rival center, Social Democrats.

According to Germany's ARD, Merkel's conservative party member Christian Democrats won 40.8% of the votes in Saarland State on Sunday.

Reports from Germany’s central bank revealed that the European Central Bank’s next plans might include a rate hike in the near future. In addition, the bank said that it will continue to buy sales bonds and maintain interest rates at low levels.

The ECB's Chief Economist Peter Praet supported the forward guidance of the bank and said that any further talks on the bank's monetary easing policy is too early.

The EUR/CHF pair kept fluctuating around 1.0697 levels since last week, showing some slight bullish bias. The last rise that appears on the chart reinforces the continuation of the bullish trend scenario in the upcoming period. This is supported by the stochastic around 50.0 levels.

Therefore, the bullish trend will remain on the intraday and short term basis near the EMA50. The next main target is located at 1.0759 levels, noting that holding above 1.0706 levels represents the first condition to continue the suggested rise. We remind you that the continuation of the expected bullish trend depends on the stability above 1.0706 and it is important to reinforce the strength of the mentioned support to keep the chances of continuing the trading inside the mentioned sideways range.

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