EUR/CHF could sink its recent low at 0.9550
In terms of technical analysis, the underlying trend of EUR/CHF has been unquestionably bearish since last year. The euro is currently returning to test its low of last month at 0.9550 francs, which it could exceed tomorrow if the SNB adopts a hawkish tone.
A pullback below the recent low would reinforce the underlying bearish outlook. Given that the exchange rate is moving into uncharted territory, the next major supports to watch will be psychologically important thresholds like 0.95 or 0.90. The thresholds 0.94, 0.93, etc. will be intermediate thresholds to monitor.
Pending a pullback below 0.9550, the short-term outlook remains neutral. A bounce off this support would pave the way for a return to the recent high at around 0.98.
Entry: Sell below 0.9550
Risk/reward ratio: >2
Follow the evolution of the EUR/CHF pair with IG.