EUR/CHF is fast approaching a long-term resistance zone after bouncing from the .9200 area!
Will the pair turn lower to extend a longer-term downtrend?
Here’s what we’re seeing on the 4-hour time frame:
EUR/CHF 4-hour Forex Chart by TradingView
The European Central Bank meets this week, and markets widely expect President Lagarde and her team to keep policy unchanged in October. Some traders may even be looking for slightly hawkish language, especially after the Fed and the Bank of Canada both struck surprisingly hawkish tones earlier in the week.
Meanwhile, the safe haven Swiss franc continues to struggle for sustained gains. Powell’s hawkish remarks boosted demand for the U.S. dollar, even as the rate cuts maintained a sense of cautious optimism across markets.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your 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!
EUR/CHF, which has been in a downtrend since August, recently bounced from the .9200 psychological level and is now trading around .9280.
The .9300 psychological area is within reach, and that zone brings together several potential resistance points, including the 200 SMA, the 61.8% Fibonacci retracement, and a trend line that has capped gains since August.
Bearish candlesticks and a sustained move below .9300 could open the door for a pullback toward the October lows near .9225, or possibly even new trend lows.
However, if the pair holds its momentum and trades consistently above the 200 SMA and trend line resistance, EUR/CHF could climb toward higher inflection points like .9400 or .9440.
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.
