EUR’s upswing against CHF looks ready for a breather!
Will it lead to EUR/CHF getting rejected at a long-term resistance area?
I don’t know if you’ve noticed but the European Central Bank (ECB) members’ objections to early and aggressive interest rate cuts have helped push the euro higher against its major counterparts including the Swiss franc.
There are also talks of the Swiss National Bank (SNB) possibly intervening in the currency markets so that probably didn’t hurt EUR/CHF’s upswing.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/CHF Daily Forex Chart by TradingView
EUR’s strength against CHF in the past few weeks has pushed EUR/CHF from its January lows near .9300 all the way to its current price near .9500.
How high can EUR/CHF fly? Bulls better watch out as the .9500 psychological level also lines up with a key support in late 2023. This year, .9500 hangs out just under the R2 (.9560) Pivot Point level and the daily time frame’s 200 SMA.
A few convincing bearish candlesticks around .9500 may attract EUR/CHF bears and maybe start a downswing.
Look out for a clear rejection at the level, which could drag EUR/CHF to the .9350 January lows if now the .9250 December lows.
If you’d rather trade with the current trend, then you can also make trading plans around a fresh upswing. Consistent trading above the 200 SMA, for example, could draw in enough bulls to push EUR/CHF to new inflection points like .9700 or .9800.
What do you think? Will EUR/CHF find resistance from the .9500 zone? Or will it extend its upswing and revisit higher areas of interest?