EUR/CHF Surges Higher as Swiss Franc Remains Under Pressure
The EUR/CHF currency pair has been trending higher for several weeks, with the Swiss Franc remaining under pressure due to low interest rates. The latest rumors suggest that the SNB may hold zero interest rates until the end of 2027, which is negative for the currency.
Bulls broke above a key retracement level and have held their gains for four consecutive weeks. This suggests that the recovery from the multi-year low in June is gaining traction. However, overbought indicators are suggesting that the bulls may take a breather before resuming their advance towards 0.9400.
The ascending trend line formed by the former tops at 0.9270/80 zone and reinforced by the 10-day moving average should ideally contain dips and guard supports at 0.9244/38. The EUR/CHF pair has broken above these levels, but it's essential to monitor the price action around them.
The monthly chart is showing a bullish failure swing pattern, indicating that the recovery from the new multi-year low in June is gaining momentum. This suggests that the EUR/CHF pair may continue its upward trend in the coming months.