EUR / CHF for a maximum of 2 months [Market comment]

Next week in the financial markets will be marked by central banks. Undoubtedly, the number one will be the American Fed, which on Wednesday will announce a decision on monetary policy and interest rates and will publish new macroeconomic forecasts, but similar decisions will also be made by the Bank of England, the Bank of Japan, the People's Bank of China, Scandinavian banks, the Bank of Hungary, and the Bank of Turkey. and finally the Bank of Switzerland.

The latter's meeting, scheduled for September 23, is of particular importance in the context of the couple's recent behavior EUR / CHF. Well, on Thursday, the daily chart of this pair clearly broke above the local highs from the first half of September, while breaking above the six-month bearish line. This is a strong demand signal that opens the way for EUR / CHF to further increases. Especially that the chart is dominated by the not yet realized two-month double bottom formation.

EUR / CHF daily chart

EUR / CHF daily chart. Source: Tickmill

back to Bank of Switzerland Obviously, there will be no interest rate changes or bias in the monetary policy. The bank will continue to use strongly "dovish" rhetoric, at the same time repeating the words about the "highly valued Swiss franc".