Consider the EUR/CHF currency pair, which may be on the verge of beginning a new bullish cycle. The Swiss inflation report is out today and prices are falling, furthering this dramatic shift that may be happening. The Swiss Consumer Price Index (CPI) fell by 0.2% mom. This decline is a little bit more negative than the -0.1% predicted in the forecast, though it does represent an improvement over the last released annual rate of -0.3%. The CPI remains 0% compared to one year ago. This is in line with the prediction and last month’s 0.1% increase.
Recent inflation data is the first key sign for the bearish EUR/CHF pair, paving the way for the expected movement in the market. Analysts have noted that the EUR/CHF shows an impulsive structure, indicating the completion of a higher-degree downtrend or possibly entering a temporary recovery phase. This impulsive structure has five clearly defined upward waves on the intraday chart. This trend suggests that following a short pause, there could be plenty more positive news to come.
According to financial market professionals, the EUR/CHF rate will continue to increase. They view it as a fantastic buying opportunity should it fall back into the 0.9276–0.9305 sweet spot. The pair’s invalidation point has been set high at 0.9180, which will prove a key line in the sand for traders. This strategic area may serve as support for those looking to capitalize on the anticipated strength of the EUR/CHF currency pair.
Traders are weighing wildly different moves after the sharp range seen in the recent Swiss inflation report. These changes are on the radar of the Swiss National Bank (SNB). SNB stands open to direct intervention strategies and/or negative-rate tools when necessary. With this decision, it puts real teeth to its commitment to proactively act in order to ensure long-term economic stability. These measures would have an important effect on the EUR/CHF. Speculators will need to continue to be on the lookout for a reversal of monetary policy by the SNB.
In the past few weeks, an impressive bottoming in EUR/CHF has resulted in a powerful upward thrust. This strengthening movement supports the notion that a bullish trend could be moving ahead. Watch our live webinar recording from December 1 to dive deep into the analysis of this currency pair. Explore the new trade paradigm and understand the forces rattling markets today!