EUR/CHF Price Analysis: Bearish Targets at 0.936 and 0.927
Muhammad Faraz 
EURCHF Price Analysis Bearish Targets at 0.936 and 0.927
The EUR/CHF pair is showing renewed bearish momentum after facing rejection from a strong resistance zone. With downside pressure increasing, technical indicators suggest further weakness ahead. Based on the current market setup, key downside targets to watch are 0.936 and 0.927.
Current Market Structure
The price action highlights that EUR/CHF has been unable to sustain gains above the strong resistance zone near 0.944–0.946. After testing this zone multiple times, sellers regained control, pushing the pair lower.
- Resistance Rejection: Strong supply has repeatedly capped upside moves, reinforcing bearish control.
- Current Price Action: The pair trades near 0.937, testing support levels with momentum pointing downward.
- Volume Analysis: Selling volume has risen on recent declines, confirming increased bearish participation.
Technical Outlook
- Overall Bias: The short-term outlook is bearish, following rejection from resistance.
- Key Levels to Watch:
- Immediate Resistance: 0.936–0.938, where sellers may step in again if price retests this zone.
- First Target – 0.936: The initial support zone, likely to be tested in the near term.
- Second Target – 0.927: A deeper support area that could come into play if selling pressure accelerates.
- Trend Confirmation: A break below 0.936 on strong volume would further validate the bearish continuation toward 0.927.
Fundamental Context
The EUR/CHF price movement is influenced by the monetary policies of both the European Central Bank (ECB) and the Swiss National Bank (SNB):
- Euro Weakness: Sluggish growth in the Eurozone and concerns over inflation are limiting the euro’s upside.
- Swiss Franc Strength: The Swiss franc remains supported as a traditional safe-haven currency, especially in risk-off environments.
- ECB vs SNB Policy Divergence: While the ECB struggles with growth challenges, the SNB’s cautious approach continues to favor a relatively stable franc.
These factors reinforce the bearish bias for EUR/CHF in the short term.
Price Prediction: 0.936 → 0.927
Based on both technical and fundamental drivers, EUR/CHF is poised for further downside. The move is expected to unfold in two stages:
- 0.936: First bearish target, likely to attract initial buyer interest but not strong enough to reverse the trend.
- 0.927: A stronger support level and the ultimate bearish target in this projection, representing deeper weakness in the pair.
Risk Considerations
- Break Above Resistance: A sustained move above 0.944 would invalidate the bearish setup and shift bias toward the upside.
- ECB Surprises: Any unexpectedly hawkish ECB policy stance or strong Eurozone economic data could strengthen the euro.
- SNB Intervention: The SNB occasionally intervenes in the currency market; unexpected moves could create volatility.
Conclusion
The EUR/CHF pair faces heavy downside pressure after rejection from a strong resistance zone. With momentum favoring sellers, the bearish outlook points toward 0.936 as the first target and 0.927 as the deeper downside objective. Unless the pair breaks convincingly above 0.944, the bias remains firmly bearish.
How did this post make you feel?
Thanks for your reaction!
About the Author
