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Short-Term Technical Outlook: EUR/CHF (Update)
Tuesday, 11 November 2008 10:54:45 GMT  |  David Song, Currency Analyst
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The EUR/CHF reached a high of 1.6187 in September before slipping to a low of 1.4299 on 10/27, and the lack of risk appetite continues to favors a bullish outlook for the Swiss franc.

Currency Pair: EUR/CHF
Chart: 60 Min Charts
Short-Term Bias: Bearish

Analysis Update

EURCHF2_11-11

During the overnight session, the GBPCHF has moved in our favor, and has crossed below the 120 SMA. Over the remainder of the trading day, I anticipate the pair to hold below 1.5012 (38.2% Fib retracement level), and we may see the pair work its way lower over the next few days. Limited demands for high-yielding currencies continue to favor a bearish outlook for the pair, and the pound-franc may work its way towards the 11/04 low of 1.4775 over the week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

Analysis

EURCHF1_11-11

The EUR/CHF reached a high of 1.6187 in September before slipping to a low of 1.4299 on 10/27, and the lack of risk appetite continues to favors a bullish outlook for the Swiss franc. Last week, we saw the pair bounce back from its lows in October to break above the 38.2% Fib retracement level, but it looks to be running out of steam, and should continue to hold below the 50.0% Fib level. The lack of momentum suggests that the pair will cross below the 120 SMA over the next few hours, and we may see the pair work its way towards the October lows again over the week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.

To contact the author of this article, please email: dsong@fxcm.com

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