Daily Forex Analysis – EUR/CHF
The current sentiment for EUR/CHF during intraday trading remains balanced. A deeper decline is anticipated if the resistance at 0.9617 holds firm. Should the pair slip below 0.9561, this would signal a continuation of its descent from 0.9695, with a probable revisit to the low of 0.9517. A definitive plunge below this point would indicate a re-emergence of the pronounced downward trajectory originating from 1.0099. Conversely, crossing above the 0.9617 mark might tilt the balance in favour of a rise, targeting the 0.9695 level.
From a broader perspective, the medium-term prognosis remains skewed towards a bearish trend, especially if the EUR/CHF pair remains significantly below the declining 55-week Exponential Moving Average (EMA), presently at 0.9797. This suggests that the downtrend commencing from the pinnacle of 1.2008 back in 2018 could potentially reassert itself, even reaching the lows experienced in 2022 at 0.9411. Nevertheless, if the pair demonstrates persistent trading above this 55-week EMA, it would enhance the likelihood that the 0.9474 level may represent a durable long-term floor. In such a scenario, a continued ascent to challenge the 1.0099 resistance would be anticipated, signifying a potential bullish trend reversal.
Analysis Summary
The EUR/CHF pair is at a crossroads. While the current resistance at 0.9617 suggests a bearish tilt, breaking this could hint at bullish undertones. The broader view emphasizes the importance of the 55-week EMA at 0.9797 in determining the pair’s trajectory.
Key Points
- The immediate resistance for EUR/CHF stands at 0.9617.
- A potential retest of the 0.9517 low is anticipated if downward movement persists.
- The 55-week EMA at 0.9797 remains pivotal for the pair’s longer-term outlook.
