EUR/CHF Breaks New Ground as Interest Rate Differential Favors Euro

The EUR/CHF currency pair has been climbing against the Swiss franc on Tuesday, and the momentum suggests it will continue. According to Christopher Lewis, a technical analyst with over two decades of experience in Forex and other leveraged markets, the interest rate differential favors the euro over the franc.

Lewis notes that the 50-day EMA sits just above the 0.93 level, indicating plenty of buyers are available. He remains relatively bullish, but doesn't expect a major shot higher; instead, he anticipates 'grinding action' as traders continue to see value on dips and stay above the 0.93 level.

Lewis aims for at least 0.95, possibly even as high as 0.9650, in the short term. He mentions that wiping out the previous reaction candle to the Japanese market's meltdown and the potential carry trade has helped stabilize the pair.