EUR/CHF Forecast As Swiss Franc Continues To Rally
The EUR/CHF outlook remains bearish as the Swiss franc continues to outperform the euro. On Wednesday, the Swiss currency once again rallied against the US dollar. However, the euro tumbled after three consecutive days of uptrend against the greenback.
Since its October highs, the euro to Swiss franc exchange rate has lost 1% which indicates the strength of the latter amid a weakening dollar. This can be attributed to the recent drop in the dollar strength index. The DXY index hit its lowest level since 11 August on Wednesday.
Considering today’s sell-off, it is very likely that the EURCHF will continue to slide in the coming days. There could be some support around 0.959 due to the presence of the range mids but there is also a probability of a deeper correction till 0.9526 which is the current range low.
This EUR/CHF forecast is based on the following chart which shows an acceptance below the range highs of 0.9650. In such cases, bears usually target the range lows, as mentioned above. The move is also supported by the recent bearish divergence on the daily RSI, which often leads to bigger pullbacks.
