The recent trend from the Euro to the Swiss Franc was very interesting and many traders are looking forward to the pair again. The Swiss Franc is still considered by many to be the safe haven. Especially the Eastern Europeans like to invest in this currency. Nevertheless, last week has caused some traders to be surprised. The Euro did better against the Swiss Franc, and once again rose above the 1.06 level for a short time. Part of the strength of the Euro was due to the correlation against the EUR/USD which was established last Thursday. As this day was a holiday in many European countries, the lead currency was able to profit especially against the US Dollar. In such situations, correlations to the other Euro currency pairs often occur. This was also the case with the EUR/CHF. The Euro bulls drove the rate up.
The fresh momentum has pulled many stop-loss levels above 1.0600, which has led to a stop-avalanche on the upper side. Not many traders expected the Swiss Franc to weaken against the Euro like this. Break-out traders have also benefited from the big breakout. The cross reached the resistance level at 1.0650. The Euro had to take a break here for the time being. The bulls closed their positions with a big plus and took their leave for the weekend. On Friday, the EUR/CHF continued to weaken and already in the morning slid back below the important psychological barrier of 1.0600. After that, the Euro only moved sideways against the Swiss Franc. In late trading, the pair traded at around 1.0585. The Euro also moved relatively little against the Swiss Franc during tonight’s Asian session. Volatility was lacking overall in the forex market. However, it is quite normal, as the market first needs to get back in order after the weekend, and the new trends only form during the European and American trading sessions.
The Daily Outlook for the Euro vs. the Swiss Franc
Currently, the Euro is trading at around 1.0592. The current price trend is likely to be decided at the 1.0600 level. From a technical point of view, the Euro continues to have a lot of upside potential. The indicators in the medium-term range have already been exhausted on the underside. This has caused the last correction. Soon the oscillators will generate fresh long signals again. The bulls will certainly not miss that. Above the 1.0600 “big figure”, the break-out traders have probably already placed their buy orders. If the long traders manage to conquer this important psychological barrier again, a new dynamic on the long side can develop. The next important resistance level for the Euro against the Swiss Franc is at 1.0630. It is rather unlikely that this hurdle will be overcome today. Thus, those who think in the short term can take their profits here.
On the downside, however, the first major support level for the EUR/CHF is 1.0571 (420 moving average). As long as this level holds, the sentiment for the Euro remains positive. However, if this level should break, the market may be disappointed. The next support level is at 1.0555. The Daily Pivot Point at the Euro vs. Swiss Franc is at 1.0600. Here the price meets a double resistance which will not be easily broken. All in all, the EUR/CHF remains in positive mode. As long as the level of 1.0571 holds, the Swiss Franc will continue to come under pressure against the Euro. Those with a conservative orientation should wait for the next few hours.
The analyses shown here do not constitute investment advice and are therefore not a recommendation to buy or sell a security, futures contract or other financial instrument. Past performance is no guarantee of future results. The analyses provided are for information purposes only and cannot replace an individual consultation. Liability for direct and indirect consequences of these suggestions is excluded.