Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/CHF At Risk of Further Declines

EUR/CHF At Risk of Further Declines

The recent advance in EUR/CHF to its highest levels since the Swiss National Bank abandoned its floor of 1.20 Swiss Francs per Euro in January 2015 looks to be running out of steam and further losses are now on the cards.

Looking first at the daily chart, the decline of the past two days – largely due to the strength of the safe-haven Franc on the political tension between the US and North Korea and the Kurdish independence vote in Iraq – has taken the cross near to the three-month uptrend support line. Any further drop to below that line, currently at 1.1384, can be expected to extend to the September 8 low near 1.1360 and even to the lows near 1.1260 touched on August 9 and August 18.

Moreover, the new high just above 1.1620 touched last Friday was not accompanied by a new high for the 14-day relative strength index (RSI), a divergence that points towards the climb having run out of steam.

Chart: EUR/CHF Daily Timeframe (June 7 – September 26, 2017)

Chart by IG

Similarly, on the weekly chart, there was no new high for the 14-week RSI when the price touched 1.1620 – another pointer towards the decline having further to go.

Chart: EUR/CHF Weekly Timeframe (June 27, 2016 – September 26, 2017)

Chart by IG

The principle risk to this scenario is an easing of political tensions that reduces demand for haven assets like the Swiss Franc and lifts EUR/CHF back above last Friday’s 1.1620 high. That would put the 1.20 level back in place as a long-term target and just below 1.1620 would therefore be a good place to put a stop.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.