EUR/CHF impulsive rebound signals potential trend, Swiss inflation data in focus [Video]
|EURCHF is in a multi-year downtrend, but what stands out now is a potential wedge formation down from the 2023 highs, with the recent spike to a new low below 0.9210. We know the Swiss National Bank watches CHF strength very closely, and they prefer a weaker franc since Swiss exporters rely heavily on sales to Europe and the US, so whenever this pair goes too far, they are ready to act. They even mentioned several times this year that intervention or negative-rate tools are still on the table.
What really matters is that from the most recent lows we can clearly see five waves up on the intraday chart, and this type of impulsive structure usually indicates completion of a higher-degree downtrend, or at least a temporary recovery phase that should extend higher after some slowdown. And with latest Swiss inflation report showing drop in prices, that could be the next important trigger for fresh upside on EUR/CHF pair.
Swiss CPI MoM Actual -0.2% (Forecast -0.1%, Previous -0.3%).
Swiss Core CPI YoY Actual 0.4% (Forecast 0.5%, Previous 0.5%).
Swiss CPI YoY Actual 0% (Forecast 0.1%, Previous 0.1%).
If we see a dip into the 0.9276–0.9305 area, we think this could offer an opportunity to join the strength, while the market trades above 0.9180 invalidation level.
For a detailed view and more analysis like this, you can watch below our latest recording of a live webinar streamed on December 01:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.