Daily Forex Analysis – EUR/CHF
The EUR/CHF currency pair continues its consolidation trajectory that began at 0.9459. The intraday sentiment still leans neutral. The currency pair is anticipated to experience a downturn as long as it remains beneath the 0.9561 resistance. A dip below 0.9459 could reinitiate a significant drop that started from 1.0099, targeting the medium-term low of 0.9411. However, if the resistance at 0.9561 is surpassed, this might indicate that a short-term bottom has been reached, ushering in a more substantial rebound.
Looking more comprehensively, the medium-term forecast for the EUR/CHF pair remains pessimistic. This assertion stems from the cross’s inability to break above the declining 55-week Exponential Moving Average, which is currently positioned at 0.9786. A decisive breach below the 0.9411 mark, which was the lowest point reached in 2022, would validate the continuation of the more extended downtrend that originated from the 2018 high of 1.2008. The next level to watch would be the 61.8% projection of the drop from 1.1149 to 0.9411, calculated from 1.0099, settling at 0.9022. For any shift in this bearish perspective, the currency pair would need to exceed the 0.9695 resistance. Unless this occurs, the bearish viewpoint remains dominant.
Analysis Summary
The EUR/CHF is in a consolidation phase starting from 0.9459. The medium-term outlook is bearish, with a potential drop to the 0.9022 level unless the 0.9695 resistance is surpassed.
Key Points
- Consolidation of EUR/CHF initiated from 0.9459.
- Bearish medium-term outlook with a potential decline towards 0.9022.
- A shift in bearish sentiment requires surpassing 0.9695 resistance.
