EUR/CHF Price Analysis: Eyes 1.0000 as Credit Suisse’s debacle continues to weigh on Swiss Franc
|- EUR/CHF is aiming to recapture the 1.0000 resistance as hawkish ECB bets soar.
- ECB Lagarde cited that inflation is projected to remain too high for too long.
- The demise of Credit Suisse has continued to weigh on the Swiss Franc.
The EUR/CHF pair is attempting to come out of the woods for an upside move above the immediate resistance of 0.9966 in the Asian session. The cross has remained in action after the demise of Credit Suisse, the second-largest bank in Switzerland. Although UBS has announced the acquisition of the former, the street expects that the fears of further banking turmoil would stay for a while.
The Euro has gained traction as European Central Bank (ECB) President Christine Lagarde has revised its guidance for Eurozone inflation on the upside. ECB Lagarde cited that inflation is projected to remain too high for too long, as reported by Reuters. She further added that wage pressures have strengthened on the back of robust labor markets and added that employees are aiming to recoup some of the purchasing power. This has bolstered hopes of the continuation of bigger rate hikes from the ECB.
EUR/CHF pair has extended its upside journey to near the prior inventory adjustment area whose breakdown led to a massive sell-off. The inventory adjustment area in a range of 0.9923-0.9967 serves as a territory where the asset spent the majority of time in its prior move and also covers significant volume.
The 20-period Exponential Moving Average (EMA) at 0.9940 is sloping north and will continue to provide support to the Euro bulls.
Adding to that, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that bullish momentum is already active.
For further upside, a decisive break above March 20 high at 0.9966 will drive the cross toward the psychological resistance at 1.0000 followed by March 02 high at 1.0042.
On the flip side, a downside break below March 16 low at 0.9800 would drag the cross toward March 14 low at 0.9748. A slippage below the latter would expose the cross to March 15 low at 0.9706.
EUR/CHF hourly chart
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