Chart of the day: EUR/CHF – Good buy or goodbye?
The EURCHF tends to be a descent “risk barometer” and in the current macro environment, I really believe this to be true. The CHF has been in demand as of late with the tariff risks on the rise, investors have flocked to the Swiss Franc. The technicals also reflect that story as well.
The EURCHF is in a technical bearish wedge, but the dips below the .9300 continue to find buyers. However, considering the lows are nearly the same, but there are lower highs, we are in what is called a bearish wedge. It tends to tilt the risks towards a downside break. The trend line with the lower highs comes in at the .9600 level and this would have to break to give the pair a bullish upside breakout.
As the pair continues to tighten in the apex of the wedge, we should soon find out if the EURCHF is a “good buy” or “goodbye!”
Author
Blake Morrow
Forex Analytix
Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.
