EUR/CHF Price Analysis: Refreshes seven-year low to hit parity, focus on 0.9725
07.03.2022, 00:09

EUR/CHF Price Analysis: Refreshes seven-year low to hit parity, focus on 0.9725

  • EUR/CHF holds onto the bearish bias around multi-year low after posting the biggest weekly loss since January 2015.
  • Sustained break of five-year-old trend line, bearish MACD keeps sellers hopeful.
  • Oversold RSI challenges further downside, 50-SMA adds to the upside filters.

Having begun the week’s trading with a downside gap to 0.9985, EUR/CHF remains on the back foot around the lowest levels since early 2015 during Monday’s Asian session.

The cross-currency pair printed the biggest weekly losses since January 2015 at the latest before hitting the parity during the week-start trading.

That said, the quote’s downside could be attributed to the broad risk-off mood and a clear break of previously key support lines from April 2020 and early 2017, respectively around 1.0420 and 1.0285 by the press time.

Also favoring the sellers are the bearish MACD conditions and an ongoing war between Russia and Ukraine.

As a result, EUR/CHF has a further downside towards testing the year 2015 bottom surrounding 0.9725. However, the oversold RSI may challenge the bear afterward.

EUR/CHF: Monthly chart

On the contrary, recovery moves beyond the 1.0420 support-turned-resistance level, will need validation from a six-month-old descending trend line on the weekly chart to challenge 50-SMA on the monthly formation, around 1.0550 and 1.0970 in that order.

EUR/CHF: Weekly chart

 

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