(VIANEWS) – EUR/CHF (EURCHF) is currently on bearish momentum. At 07:06 EST on Thursday, 15 September, EUR/CHF (EURCHF) is at 0.9537, 0.708% down since the last session’s close.
Why is EUR/CHF Currency Going Down?
The currency pair EUR/CHF is at a very high risk of reversal, with the EUR/CHF at its lowest risk level since 2014. This may be due to market conditions that favor the CHF, but this is not the only reason. The currency is also the most heavily shorted currency in the G-10. In this case, the unwinding of short positions would be beneficial for the CHF.
Despite the recent gains, EUR/CHF is still trading near its January 2015 low. After a rebound from a low of 0.9950, the currency pair is trading in a narrow range. It rejected a recent upside retracement at the resistance zone. Its next target is 0.97112 (the low of 28 July 2022).
EUR/CHF is currently positioned for a major upside move, but it must be aware of a few factors. The US Federal Reserve has implemented an ultra-loose monetary policy to help stabilize the economy. Furthermore, Covid-19 has arrived in the US and Europe. If the currency pair starts making a break above its SMA, the currency pair may be primed for a rally.
Another possible cause of CHF weakness is the Swiss policy of quantitative easing. The central bank of Switzerland, the SNB, is committed to buying euros to weaken the CHF. Although QE is tempting for small open economies like Switzerland, the monetary policy has proved to be too costly in the long run. This has resulted in negative interest rates, which is risky and could end up causing collateral damage.
EUR/CHF (EURCHF) Range
About EUR/CHF’s daily highs and lows, it’s 0.584% down from its trailing 24 hours low of $0.96 and 0.729% down from its trailing 24 hours high of $0.96.
EUR/CHF’s yearly highs and lows, it’s 0.031% up from its 52-week low and 12.777% down from its 52-week high.
EUR/CHF’s last week, last month’s, and last quarter’s current intraday variation average was a negative 0.36%, a negative 0.05%, and a positive 0.34%, respectively.
EUR/CHF’s highest amplitude of average volatility was 0.41% (last week), 0.35% (last month), and 0.34% (last quarter), respectively.
Forex Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, EUR/CHF’s Forex is considered to be overbought (>=80).
News about EUR/USD
- Eur/usd price analysis: key SMA confluence restricts recovery moves around parity. According to FXStreet on Wednesday, 14 September, "Even if the quote regains the parity, the 50% Fibonacci retracement level of August-September downside, near 1.0120 and the latest swing high near 1.0200 could probe the EUR/USD bulls before giving them control.", "To sum up, EUR/USD fades bounce off the latest bottom, which in turn keeps bears hopeful. "
- Eur/usd price analysis: Marches towards 1.0200 inside falling wedge. According to FXStreet on Tuesday, 13 September, "It should, however, be noted that the clear upside break of the 1.0200 threshold becomes important for the EUR/USD bulls as it will confirm the theoretical transition towards the 1.0950 hurdle.", "Meanwhile, pullback moves may initially aim for the 50-DMA support near 1.0115, a break of which could direct EUR/USD bears towards a one-week-old support line, close to 1.0085 by the press time."
- Eur/usd to trade offered in a 0.9950-1.0050 range – ING. According to FXStreet on Wednesday, 14 September, "We doubt these support measures can make a meaningful difference for EUR/USD pricing, leaving it to trade offered in a 0.9950-1.0050 range."
- Eur/usd forex signal: break and retest points to more upside to 1.0300 – 13 September 2022. According to DailyForex on Tuesday, 13 September, "The EUR/USD moved sideways in the morning session as the market focused on the upcoming inflation data from the United States and some European markets. ", "The EUR/USD pair has been in a strong bullish trend in the past few days as investors reflect on last week’s interest rate decision by the European Central Bank (ECB). "
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