EUR/CHF has been stuck inside a descending triangle on its daily time frame, and the pair is closing in on the bottom.
Will it go for another bounce off support?
Take a look at these long-term inflection points!
EUR/CHF Daily Forex Chart by TradingView
This euro pair has been forming lower highs since July 2024 and finding support at the .9250 minor psychological mark, creating a descending triangle formation that has been holding for more than a year already.
Price looks ready for another test of the triangle bottom near S2 (.9240) while technical indicators are pointing to a pickup in bearish pressure.
Are we about to see a breakdown soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Backlash over the EU-US trade deal framework has been weighing heavily on the shared currency so far this week while the safe-haven franc has been able to benefit from some risk-off flows.
With the August 1 tariffs deadline fast-approaching, the European region could be facing plenty of trade uncertainty should countermeasures agreed upon by member states be enforced.
Look out for long red candlesticks or a potential weekend gap below the triangle bottom that could set off a longer-term downtrend for the pair, possibly leading to a break of the next bearish target at S3 (.9170) or lower.
On the other hand, reversal candlesticks forming at the triangle support could put EUR/CHF back on track towards testing resistance near R1 (.9420) and the dynamic inflection points at the moving averages.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
