EUR/CHF trades on the defensive below the 1.0800 mark
- EUR/CHF loses momentum near the 1.0830 region on Tuesday.
- The cross recedes from Monday’s multi-week tops in the 1.0835/40 band.
- The Swiss franc stays underpinned by the current safe haven demand.
The now better tone around the Swiss franc has prompted EUR/CHF to give away part of Monday’s advance and slip back to the sub-1.0800 levels on turnaround Tuesday.
EUR/CHF weaker on generalized correction in riskier assets
EUR/CHF failed to re-test the area of recent tops during early trade and is now navigating the mid-1.0700s in a context of broad-based profit-taking in the risk complex.
Further out, the renewed safe haven demand keeps the franc underpinned and forces the cross to leave behind the area beyond 1.08 the figure despite markets’ mood stays supportive of further gains in the riskier assets.
That said, the usual backdrop surrounding the recovery in the global economy coupled with rising hopes of a COVID-19 vaccine and the current massive monetary stimulus pumped into the system by central banks across the planet should keep sustaining the constructive view in the risk universe in the longer term.
EUR/CHF significant levels
As of writing the cross is retreating 0.55% at 1.0750 and faces the next support at 1.0725 (200-day SMA) ahead of 1.0709 (50% Fibo of the May-June rally) and finally 1.0679 (55-day SMA). On the upside, a surpass of 1.0838 (weekly high Jul.27) would expose 1.0915 (2020 high Jun.5) and then 1.1033 (monthly high Dec.13 2019).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
