EUR/CHF is now trading below parity.
Will we see sustained trading below the major psychological level?
Or will the pair bounce like it did the other times it dropped below 1.0000?
EUR/CHF: Daily
EUR/CHF Daily Forex Chart
This is not a drill. EUR/CHF is trading below 1.0000!
It’s a BFD for forex traders because it’s only the THIRD time that this happened since the euro was established in 1999.
The first one was in 2015 when the Swiss National Bank (SNB) said auf Wiedersehen to defending its 1.2000 peg.EUR/CHF stayed below 1.0000 for about a week until it bounced up and the world paid closer attention to a viral dress that may or may not be colored black and blue.
The 1.0000 mark was also breached for one day in early March 2022 following Russia’s initial attacks in Ukraine.
Is the third time the charm for EUR bears?
The odds are on the bears’ side as traders continue to worry about high inflation and high interest rates choking global economic growth.
Growth prospects are especially grim for Eurozone, which also has key member countries butting heads with Russia and months away from a potential energy crisis.
It also doesn’t help that recent candlesticks are as bearish as they come and that the 100 and 200 SMAs are firmly pointed lower.
Of course, we could see increased EUR demand as we start a brand new month.
Talks of the European Central Bank (ECB) raising its interest rates could boost EUR demand against the safe-haven CHF.
Stochastic’s oversold signal could also set up EUR/CHF for a bounce at the first signs of bullish pressure.
What do you think? Will EUR/CHF bounce above 1.0000 for the third time? Or will enough bears jump in and keep the pair below parity?
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