EURCHF exchange rate may now have formed a bottom but still faces resistance up ahead

We could probably summarise the attitude of the market to this one by asking whose negative interest rates do you prefer? Switzerland of course in the EEA and counts Germany France and Italy among its largest trading partners. If you are making cross-border payments it so important to get the best euro exchange rate that you can.

The weekly chart is dominated by the six month high at 1.1151 and the gently sloping downtrend that’s been in place since then. The near term low at 1.08686 has formed a tentative bottom.

What’s noticeable is that EURCHF seems to respond to peaks and troughs ints RSI 14 the six month high was marked by RSI 14 peak at 72.56% and the recent low by a dip down to 32.91 since when both the indicator and the price have been moving higher.

We saw bullish short term momentum signals in the middle of June and rallied 0.54% on the back of that but we will want to see short term targets of 1.09635 and 1.10017 bested before we can even think about mid and longer-term targets of 1.1117 and 1.1151, the latter being the 52 week high, which was last visited in early March 2021.

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