Eurozone Inflation Weighs Down EURCHF
30 November 2023
In today's focused analysis, we revisit the EURCHF pair, which is currently undergoing significant movements. Triggered by the lower-than-expected Eurozone inflation figures, the EUR is facing notable weakness. This development is significantly impacting the EURCHF pair, particularly around the crucial 0.969/0.97 resistance level.
Previously, EURCHF had been teasing the key horizontal resistance at 0.969/0.97, where it formed a triple top pattern, highlighted by the yellow marker. The scenario took a decisive turn as the price broke below the black neckline of this pattern. This bearish momentum was compounded when the pair also breached another vital horizontal support at 0.969/0.97, cementing a sell signal.
Today's inflation data from the Eurozone further fueled the bearish trajectory, propelling the price to fall below the long-term downtrend line, indicated by the red line. This move below the green resistance area, the blue horizontal line, and the red downtrend line signals a strong negative sentiment for EURCHF in the long-term outlook.