FX.co ★ Skull999 | EUR/CHF

EURCHF Daily Forecast The EUR/CHF pair is trading within a clearly defined ascending channel and is maintaining an upward trend. However, based on recent price action, it appears that the pair has reached a critical juncture after a sharp decline from the local high at 0.9650. The pair is currently trading near the 0.9537 level, testing a key support area as bulls try to regain control. There was a recent attempt to break the 0.9650 level, but under selling pressure, the price declined towards the moving support line. This correction coincides with the tightening of the Bollinger Bands, which indicates a potential increase in volatility in the near future. The pair remains above its major moving averages, with the 20-day and 50-day EMAs acting as immediate support levels. However, if these moving averages fail to hold, selling pressure could increase and the currency pair could face further downside risks. Despite the recent bearish trend, the EUR/CHF pair continues to trade in an ascending channel and the overall trend structure is intact. The upper boundary of this channel has acted as a strong resistance line and has limited previous growth attempts. A break and consolidation above 0.9650 could provide fresh bullish momentum, which could propel the price above 0.9700. However, the presence of overbought conditions in momentum indicators such as RSI and Stochastic suggests that additional upside resistance may emerge before a decisive breakout. If buyers can regain control, the next key target is the psychological level of 0.9750. At this level, sellers may try to regain control. Recent price action suggests that the trend may change as selling pressure increases. A break below the lower boundary of the ascending channel could change market sentiment and push the pair towards the next major support area at 0.9450. This level represents a key protection zone for buyers as it aligns with previous price consolidation and the 200-day exponential moving average. If this support fails to hold, losses will accelerate and the pair could fall to the 0.9400 level. This area represents the last major demand zone before the downtrend continues towards the 0.9350 level. However, given the overall bullish structure, a return to this level could revive buying interest and provide a re-entry opportunity for traders looking to capitalize on the overall uptrend. Probability indicators are currently pointing to a downtrend, indicating that the uptrend is weakening. However, if the index falls into the oversold zone and prices reach the key support level, a recovery could be imminent. Similarly, the RSI remains near the midline, indicating a neutral stance with neither bulls nor bears currently in full control. A sustained decline below 50 could indicate a rise in pessimistic sentiment, while a rise above 60 could indicate a recovery in purchasing power. The Bollinger Bands indicators have also started to narrow, indicating that volatility is set to increase. Traders should look for a decisive breakout of the current range to confirm the next directional trend. In short, the Swiss franc draws its support from its appeal as a safe-haven asset. This is especially true given the ongoing geopolitical uncertainty and economic issues in the Eurozone. As risk aversion increases, demand for the Swiss franc could increase, putting downward pressure on the EUR/CHF pair. At the same time, the Swiss National Bank’s unusual stance could weaken the franc and the euro. Market participants are expected to closely monitor upcoming economic data, including Eurozone inflation data and the Swiss National Bank’s monetary policy update, for further clues on the pair’s direction. Moving forward, the EUR/CHF pair needs to establish a clear trend before making the next big move. A clear break above 0.9650 is likely to continue the uptrend and lay the groundwork for further gains. Conversely, a break below the 0.9500 support level is likely to require a prolonged correction. Given the current market trends, traders should remain vigilant and look for confirmation signals.