Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

69.21% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

EUR/CHF: rare and peculiar

EUR/CHF: rare and peculiar

Information is not investment advice

EURCHF is a rare cross pair that is nonetheless very interesting both from the technical and fundamental point of view. Let’s throw a strategic look at it to see what we may expect in the nearest future.

Not going too far back into the past, we can distinguish three periods of performance in EUR/CHF.

History: three periods

The first period (marked “1”) is the time when the Swiss franc was pegged to the euro. The price was flat at 1.2050 most of the time. A plunge like never before marks the end of this period – Swiss financial authorities decided to unpeg the franc from the euro.

The second period (marked “2”) roughly corresponds to 2015-2018. During those years, EUR/CHF has been mostly rising. It peaked exactly at 1.2050 and bounced downwards.

The third period starts with the bounce from the strategic resistance of 1.2050 and goes into the present moment. EUR/CHF basically undid all the gains it did in the second period – now, it is roughly where it was shortly after the drop when the unpeg took place.

Fundamentals: support at all cost

So is it going below the support of 1.0520? Unlikely – the Swiss economy depends on European buying. Expensive CHF will demotivate the outside Europeans to buy what Switzerland has to offer – that’s why the Swiss National Bank has been so preoccupied lately to not let CHF appreciate too much. “Too much” means EUR/CHF going below 1.0520: we can see this strategic support as solid ground. For this reason, in the mid-term, EUR/CHF may approach and even dip below this mark, but in the long term the possibility that it will go significantly lower is not that big. For this reason, expect a strategic bounce upwards, which may have already started. In the end, the channel 1.0520 – 1.2000 may well turn out to be a multiyear sideways movement zone where the SNB is trying to keep the CHF.

1.png

                                                                                                    LOG IN

Similar

Popular

How Will BoJ Meeting Affect the Yen

Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus

Choose your payment system

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later