Navigating the Downward Drift of EURCHF Amidst Global Unrest
09 October 2023
Hello traders! In today's technical exploration of the market, we delve into the dynamics playing out in the Euro to Swiss Franc (EURCHF) pair, which is currently on a downward trajectory. This movement primarily stems from a flee towards safety, significantly influenced by a week painted with the intense hues of conflict escalation in the Middle East.
From a technical perspective, a crucial juncture was met at the tail end of September. Here, we witnessed a decisive bounce of a key down trendline (green), which concurrently was also a bounce of the horizontal resistance at 0.969 (orange). This line held weight not only as a long-term down trendline but also as the upper line of a symmetrical triangle. The bounce provided a sell signal potent in its clarity, redirecting our sights towards the lower line of the symmetrical pattern, marked in black, and also towards the horizontal support at 0.952 (blue).
The probability of reaching that lower black line of the symmetrical pattern looms large, embedding itself firmly in our primary scenario for this instrument. Thus, our perspective on the EURCHF is straightforwardly bearish. A sell signal has been forged here, and while a potential destructive passage through the orange resistance could alter the narrative, the chances of such an event, for now, appear markedly slim.