Safe Haven Effect: Swiss Franc Pressures EUR/CHF Below Key Support
21 November 2024
In today's technical analysis, we focus on Euro to Swiss Franc, a pair that is under significant bearish pressure due to geopolitical developments, including the ongoing Russian aggression in Ukraine and recent reports of alleged ballistic missile attacks. As the Swiss Franc retains its reputation as a safe-haven currency, it has strengthened significantly against the Euro, which lacks such safe-haven appeal.
From a technical perspective, the pair has decisively escaped a symmetric triangle pattern, marked by black lines, to the downside. Adding to the bearish sentiment, the price has broken below a key horizontal support level marked with red, and it now trades at new long-term lows—the lowest since August. This technical breakdown underscores the dominance of sellers in the current market environment.
For now, the sentiment remains firmly negative. A buy signal would only emerge if the price were to climb back above the red resistance level. However, the likelihood of this scenario appears slim given the current fundamental and technical context, where bearish momentum continues to dominate.