EUR/CHF Breaks Support at 0.94, Eyes Bullish Move Above 0.95

The EUR/CHF currency pair has been in an uptrend for some time, and despite a weak Monday session, it remains bullish overall against the Swiss franc. The euro initially attempted to rally but fell apart, with support levels holding at around 0.94. This level was previously resistance, making it a key area of interest.

The difference in interest rates between the European Central Bank and the Swiss National Bank is also contributing to the pair's strength. The ECB has recently raised rates, while the SNB remains hesitant to follow suit, stuck around the zero band. This means that the differential will likely remain in favor of the euro.

The markets are currently viewing the EUR/CHF through the lens of the carry trade, with investors seeking yields in a low-interest-rate environment. The Swiss market is essentially flat, while European indices have some momentum to them. Buying on dips is a good strategy for this long-term uptrend.