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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • The $NDX is approaching the upper crust of the channel, and should it do so soon it might mark the top of the current rally.Get your market update from @PaulRobinsonFX here: https://t.co/Rw4o8brhgx #nasdaq https://t.co/dMN2EnLyEq
  • Favorite quotes of the day: Bridgewater's Dalio 'cash is trash'; Bridgewater's Prince saying the boom-bust economic cycle is over; JPM's Dimon saying the only bubble is in sovereign debt
  • $GBPUSD trying to base some support of fibo prior resistance 3117 https://t.co/iiuOEdfZUN
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.17% Oil - US Crude: 0.02% Gold: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/81A2igDsqg
  • $GBPUSD is again testing resistance on the daily chart at a trendline joining recent lower highs. If it can break out to the upside from a triangle pattern. Get your market update from @MartinSEssex here: https://t.co/ojGkdTFnD5 https://t.co/cKwcQFOv4L
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.48%, while traders in US 500 are at opposite extremes with 75.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Ouy6Syf8T
  • Boeing CEO says the company plans to start with a "clean sheet of paper" on a new midsize airplane... Yikes $BA
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 0.22% Wall Street: 0.16% France 40: 0.02% Germany 30: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/d2OTCpHJCS
  • En español: Dow Jones - ¿Qué es y por qué es importante para los traders? #trading #DJIA #DJI #WallStreet https://t.co/Bp9tig8NWi https://t.co/ttpiN9Js8M
  • The $NZD is poised to mark the fourth consecutive weekly decline against the US Dollar with NZD/USD down more-than 2.4% off the late-December highs. Get your market update from @MBForex here:https://t.co/MUrqMYnGGV https://t.co/fmExUwAaSK
EUR/CHF Touches 3-Year Lows With More Scope for Downside

EUR/CHF Touches 3-Year Lows With More Scope for Downside

2020-01-16 02:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

Euro, Swiss Franc, EUR/CHF Technical Analysis– TALKING POINTS

  • EUR/CHF is hovering at 3-year lows
  • Scope for further downside remains
  • What risks have catalyzed selloff?

EUR/CHF Technical Analysis

After peaking in April 2018, EUR/CHF experienced an aggressive selloff and has declined over 10 percent. The pair is now hovering at three-year lows, and recent price action suggests there is scope for additional downside moves. The pair’s decline particularly accelerated after it broke September 2019 rising support (white-dashed line) while continuing to trade below the December descending resistance zone (red channel).

EUR/CHF – Daily Chart

Chart showing EUR/CHF

EUR/CHF chart created using TradingView

Looking at a weekly chart shows EUR/CHF is approaching a multi-tiered floor between 1.0656 and 1.0717. If selling pressure is alleviated with the help of enthusiastic buyers, EUR/CHF may end up staging a recovery. However, the extent of the upside move may be curbed by resistance at 1.0888 (gold-dotted line). Traders may therefore wait to see whether the pair clears or bounces back from upcoming support.

EUR/CHF – Weekly Chart

Chart showing EUR/CHF

EUR/CHF chart created using TradingView

Fundamental Factors Favoring Swiss Franc

Part of EUR/CHF’s decline from a non-technical perspective has a lot to do with formidable fundamental risks that pressured the Euro throughout 2018 and 2019. This included Brexit, turbulent Italian politics and EU-US trade tensions to name a few. These anxiety-inducing risks caused investors to dump the Euro in exchange for its haven-linked counterpart, the Swiss Franc.

However, EUR/CHF has recently declined not so much due to Euro weakness but market-wide strength in the Swiss Franc. The US Treasury Department recently added Switzerland to its watchlist of currency manipulators amid the SNB’s interventions. Swiss policymakers have explained that the move is not to get a trade advantage but to avoid the negative effects that a stronger CHF has on Switzerland’s export-based economy.

As such, investors are now anticipating that the SNB may not put a cap on the EUR/CHF exchange rate out of concern that it may anger Washington and be met with trade-related consequences. It is this fundamental force which may be behind catalyzing further downside breakouts in the pair. As such, monitoring this development will be crucial.

EUR/CHF TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.