(VIANEWS) – EUR/CHF (EURCHF) is currently on bearish momentum. At 08:06 EST on Tuesday, 20 September, EUR/CHF (EURCHF) is at 0.9641, 1.07% down since the last session’s close.
Why is EUR/CHF Currency Going Down?
The EUR/CHF currency pair has been slipping since March, with the price of the Swiss franc dipping below the 1.05 handle. This pattern is consistent with a bearish triple moving average. In order for a currency pair to have a negative momentum, all three SMAs must be below the price. In addition, all three SMAs must have negative gradients. Because of the bearish momentum, EUR/CHF may be headed lower in the near term.
The Swiss National Bank (SNB) has a policy of quantitative easing (QE). The central bank has committed to buying euros in order to weaken the CHF. While this might sound tempting in a small economy like Switzerland, it has been proven to be a costly policy, with negative consequences for the country’s economy.
The euro’s weakness is a result of a number of factors. The euro’s largest trading partner is the United States, which is highly dependent on exports. Moreover, the Eurozone’s monetary policy is a primary cause for the weakening of the euro.
The central bank’s easing policy has also led to massive capital outflows from CHF, as the risk of a global recession has shifted the focus on other currencies. This may cause a decline in the stock market, which would attract demand for CHF.
EUR/CHF (EURCHF) Range
Regarding EUR/CHF’s daily highs and lows, it’s 0.679% up from its trailing 14 days low of $0.96 and 0.67% down from its trailing 14 days high of $0.97.
EUR/CHF’s yearly highs and lows, it’s 1.154% up from its 52-week low and 11.429% 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 0.24%, a negative 0.03%, and a positive 0.34%, respectively.
EUR/CHF’s highest amplitude of average volatility was 0.31% (last week), 0.34% (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 oversold (<=20).
News about EUR/USD
- Eur/usd snaps three-day rebound near 1.0000 on hawkish fed bets, ecb’s pessimism. According to FXStreet on Monday, 19 September, “Looking forward, the absence of Japan and the UK will join the light calendar to restrict intraday moves of the EUR/USD pair. “, “Unless declining back below 21-DMA support near 0.9990, the EUR/USD prices are likely to aim for the 50-DMA resistance near 1.0100. “
- Eur/usd to suffer additional losses if 0.9950 support fails. According to FXStreet on Monday, 19 September, “If this level turns into resistance, EUR/USD could slide toward 0.9900 (psychological level) and 0.9865 (September 6 low).”
- Eur/usd pullback eyes 1.0000 on hawkish fed bets, inflation concerns, ecb’s lagarde eyed. According to FXStreet on Tuesday, 20 September, “It’s worth noting, however, that the return of the risk-off is likely to join the pre-event anxiety to exert downside pressure on the EUR/USD prices. “, “Elsewhere, hopes of a major stimulus from the European Commission and hawkish speech from the European Central Bank (ECB) officials seemed to have favored the EUR/USD buyers.”
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