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EUR/CHF Likey To Rally If Risk Appetite Improves

Published 13/02/2018, 12:26 pm
Updated 06/07/2021, 05:05 pm

Originally published by AxiTrader

The new trading week started with slightly higher risk appetite and improved market sentiment. Stocks caught a bid, while the safe havens came under pressure. If the market switches back to "risk-on" mode, one currency pair that could stand out as winner is EUR/CHF.

The Swiss Franc is only attractive when traders are seeking a safe haven. Other than that, very little speaks for the currency. Inflation remains stubbornly low in Switzerland, and the SNB is likely to keep rates negative for quite some time ahead. Meanwhile, the economy of the Euro Zone has made significant progress and the ECB has already signalled a shift in monetary policy.

The charts are also suggesting that further gains are ahead. EUR/CHF has broken above 1.15 resistance, and a clear break above the falling trendline from the January high would pave the way for a rally towards 1.17.

Chart
EUR/CHF

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