EURCHF Continues to Trend Higher as Swiss Franc Remains Pressured by Low Interest Rates

EURCHF hit new highest level in nearly seven months, following the latest acceleration higher on Tue/Wed, extension of larger uptrend.

The Swiss Franc remains under pressure due to low interest rates, with the latest rumors that the SNB may hold zero rates until end of 2027, adding to negative outlook for the currency.

Bulls broke above 50% retracement of 0.9661/0.8978 downtrend, holding in green for the fourth consecutive week and on track for the second monthly gain, with reversal pattern developing on monthly chart (bullish failure swing), signaling that recovery from new multi-year low (0.8977) is gaining traction.

Daily studies remain in full bullish setup but overbought stochastic and momentum indicators turned to sideways mode, suggesting that bulls may take a breather for consolidation before resuming towards 0.9400 zone (Fibo 61.8% / top of weekly Ichimoku cloud).

Former tops at 0.9270/80 zone (June/July) reinforced by ascending 10DMA should ideally contain dips and guard supports at 0.9244/38 (20DMA / broken Fibo 38.2%).

Res: 0.9342; 0.9400; 0.9445; 0.9500
Sup: 0.9303; 0.9266; 0.9244; 0.9211