2025-11-03 03:47:00
EUR/CHF has been cruising below a descending trend line on its 4-hour time frame and looks ready to test resistance once again.
Will the area of interest still hold?
Take a look at this confluence of inflection points!
Another tariffs tirade from Trump and China triggered strong safe-haven rallies in early October, bringing in strong demand for the lower-yielding gold-correlated Swiss franc.
However, trade war jitters faded last week when the U.S. and China struck a truce, leading CHF to retreat from its climb and EUR/CHF to pull up from its downtrend.
Is this a mere correction, though?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Swiss franc and euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The pair is already hovering around the 38.2% Fibonacci retracement level around the pivot point (.9270) which could be enough to keep gains in check.
A larger correction could still reach the 50% Fib close to the .9300 handle and R1 (.9300) or the 61.8% retracement that coincides with a former support zone and the falling trend line.
Keep your eyes peeled for reversal candlesticks at any of these areas since a return in bearish pressure could drag EUR/CHF back to its lows near S2 (.9220) or to new downside targets at S3 (.9200) then S4 (.9180).
On the other hand, long green candlesticks piercing above the area of interest and trend line could mark the start of a reversal to the bullish levels at R3 (.9360) and beyond.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
