EURCHF Builds Momentum Above Key Support as ECB Meeting Looms

EURCHF is trading above the previous breakout zone near 0.9396–0.9400, confirming a shift toward bullish structure. Price action shows a clean breakout from consolidation, aiming for the 0.9485–0.9546 resistance zones next, supported by strong momentum.

Support Zone: 0.9385–0.9400 (previous resistance turned support)

Immediate Resistance: 0.9485 (61.8% Fib level)

Target Zones:

TP1: 0.9485 (61.8% Fib retracement)

TP2: 0.9545 (78.6% Fib retracement)

Risk Level: Stop-loss below 0.9380 for protection.

✅ Bullish Factors:
Bullish break above mid-range structure and retesting successfully

Clean bullish market structure and higher lows developing

50% Fibonacci retracement break supports further upside momentum

Weak CHF fundamentals due to global risk appetite and cautious SNB stance

🧠 Fundamental Insights:
ECB Outlook:

ECB is heading toward a "complex June meeting" with Klaas Knot warning that while short-term tariffs may suppress inflation, long-term risks are two-sided.

Despite likely rate cuts, the ECB remains cautious due to trade war uncertainty and global pressures.

Eurozone Risks:

Upcoming GDP and CPI reports expected to show sluggish growth and cooling inflation, which could limit upside for EUR in medium term.

CHF Fundamentals:

Market sentiment favors risk assets, weakening the traditional safe-haven CHF.

No aggressive SNB tightening expected soon.

Recent Headlines:

US Treasury Sec Bessent highlights European concerns about Euro strength.

Weaker CHF amid global calm and stable financial markets.

📌 Trading Plan:
Bias: Bullish while holding above 0.9400

Entry: On dips near 0.9415–0.9420

Target 1: 0.9485

Target 2: 0.9545

Stop-loss: Below 0.9380

⚠️ Watch:
If EUR zone GDP or CPI disappoints heavily this week, expect sharp pullback risk.

A drop back below 0.9380 would invalidate the bullish breakout scenario.