FXStreet (Mumbai) – The bid tone on the EUR weakened, pushing the EUR/CHF into the negative territory after Germany reported an unexpected drop in exports.

Focus on ECB accounts

The European Central Bank (ECB) policy accounts/minutes are likely to reiterate the bank’s readiness to do more QE if required. Moreover, the drop in the german exports shows all is not well in the strongest economy in the Eurozone, which further strengthens the call for more QE.

Meanwhile, the pair could also be influenced by the sentiment in the major European markets. At the moment, the major European stock futures indicate the equities could struggle to maintain the risk-on tone today.

USD/CHF Technical Levels

At 1.0935, the immediate support is seen at 1.0914 (5-DMA), under which the pair could drop to 1.0874 (Sep 30 low), followed by a major support at 1.0857 (50-DMA). On the higher side, a break above 1.0950 would expose 1.0982 (Sep 25 high), above which the pair could target 1.1011 (Sep 14 high).

The bid tone on the EUR weakened, pushing the EUR/CHF into the negative territory after Germany reported an unexpected drop in exports.

(Market News Provided by FXstreet)

By FXOpen