EUR/CHF Soars as Swiss Franc Feels the Heat of Rate Cuts

In today’s analysis, we delve into the EUR/CHF dynamics, spotlighting the recent activities influencing the Swiss Franc. The Swiss National Bank’s decision last Thursday to reduce interest rates from 1.75% to 1.5% has cast a significant impact, notably depreciating the Franc’s value. This unexpected cut, particularly detrimental for the currency, has seen the Franc on a downtrend since last week.

Observing the EUR to CHF pair reveals a consistent uptrend from the year’s start, with the Franc weakening progressively. The rate decision further catalyzed this movement. From a technical standpoint, the pair recently broke free from a pennant pattern identified by blue lines, surpassed a black downtrend barrier, and crucially overcame a pivotal horizontal resistance at 0.97, marked yellow. With the price sustaining above this threshold, the outlook remains staunchly bullish.

Despite the robust ascent since the year’s inception, a correction phase seems probable at some juncture. Yet, the prevailing stance remains bullish as long as the price hovers above the yellow-marked zone.

Source: https://www.axiory.com/analytics/technical-analysis/eur-chf-soars-as-swiss-franc-feels-the-heat-of-rat