The EURCHF is in an Extended Flat Correction With a 3-3-5 Wave Structure

EURCHF is in an extended flat correction with a 3-3-5 wave structure. It is in subwave C of this cycle, so the currency should retest the fibonacci before it continues to move lower. Look for a rejection of the fibonacci level to enter a risky trade with tight stops above the recent highs. If the EURCHF breaks below the fibonacci level, you should take a risk entry with tight stops above the recent highs.

ECB

The ECB eurchf is the Euro's exchange rate versus the Swiss franc. This exchange rate is published by the European Central Bank and shows the Euro quoted in Swiss Francs on a specific date. A break below the floor would have serious implications. Moreover, if the ECB is in a recession, the EUR would likely become weaker. This scenario is not uncommon as the ECB is under tremendous pressure to normalize monetary policy to stimulate the economy.

While this move was welcomed by investors, the SNB had a conflicting motive. While the ECB is looking to boost the euro, the SNB is trying to avoid its currency from appreciating in response to the Euro's slide. The SNB's policy can bolster the Swiss currency and make the EURCHF more stable. In addition, if the SNB can successfully manage its balance sheet, the EURCHF can also rise.

The SNB outdoes the ECB by timing and size of its rate hike. The Swiss franc rallied after the SNB made its announcement, but it failed to meet the ECB's inflation target. The SNB even dropped the phrase "highly valued" from the SNB's statement. The Swiss franc is now priced in USD terms, but it is unlikely to rise significantly against the euro.

SNB

The recent ECB and SNB comments caused stock markets in Switzerland to cool and react in kind. The Swiss market index fell 14 percent, the largest loss in history, while the SMI busted to a record 140 billion franc marketcapitalization. That's more than half of the country's quarterly GDP. That's enough to make investors hesitant about the future of the Swiss franc. Let's analyze why.

The SNB is prepared to continue to raise interest rates. It is expected to raise rates by 25 basis points in September and then again in December and March 2023. It will also continue to express its readiness to intervene in foreign exchange markets. That means the Swiss franc will become a more expensive asset in nominal terms. The SNB also expects inflation to remain high, at more than 4% in 2022. As a result, the SNB is likely to raise interest rates once more before normalising monetary policy.

In late 2012, GDP growth slowed, and the euro zone's economic weakness hurt Switzerland's main trading partner. Yet the SNB's active monetary policy helped keep the Swiss economy growing, and the SNB ensured a floor price for the Swiss franc, while favourable financing conditions encouraged capital goods investment. However, in the aftermath of the global economic crisis, the Swiss economy began to falter.

Eurozone debt crisis

The Eurozone debt crisis, also known as the European sovereign debt crisis, was a series of economic and financial events that occurred from the early 2007s to the late 2010s. As a result, several member states were unable to repay their government debt, refinance their bonds, or bail out their over-indebted banks. Third parties, such as the European Central Bank, had to step in and provide aid to countries in need.

Increasing amounts of national debt in the Eurozone prompted lenders to raise interest rates on these loans. With debt and deficit levels rising rapidly, it became more difficult for member states to finance budget deficits. This led to social unrest, as well as a crisis of confidence in the leadership of some countries, especially Greece. The crisis was further compounded by the lack of common eurozone institutions and the close interlinkages between banks and governments.

The official sector's response to the Eurozone debt crisis has largely failed, and all peripheral European countries are now in play. Greece, Ireland, and Portugal have stepped into full bailout programs with the European Central Bank. Despite this, the possibility of a larger peripheral country getting engulfed in the crisis has spurred another round of containment measures. These new containment measures will involve more active intervention on the part of players in the official sector in order to protect those countries with the most vulnerable economies.

Swiss franc

The Swiss franc is the currency of Switzerland, Liechtenstein, and Campione d'Italia. Its coins and banknotes are issued by the Swissmint. The Swiss franc is the most widely used currency in the world, and is the legal tender in many countries. However, the Swiss franc is not the same as other currencies. Here are some reasons why it may be different from other currencies.

In the 1800s, the Swiss franc was tied to the French franc, and the first one was introduced in 1850. This complicated currency system included over 8,000 coins and banknotes! In 1865, Switzerland became a member of the Latin Monetary Union, which tied currencies to silver. The currency was pegged to the dollar during the Great Depression, but this was only for a brief period. It eventually became a member of the European Monetary Union and became linked to the gold price.

In 2006, the Swiss National Bank announced a competition to design a new series of banknotes. The competition was intended to choose a new design for the nine-series coin, which is set to be released in 2010. The theme was 'Open to the World', and twelve people were chosen to participate. Manuel Krebs's design won first prize, but the National Bank of Switzerland decided to go with another design from Manuela Pfrunder. After the competition, the new series of banknotes was released.

Trading opportunities

In order to profit from the EUR/CHF, traders should be aware of the current trend and the current trading opportunities for the pair. The EUR/CHF is a highly liquid financial instrument that is volatile and has many potential trading opportunities. However, you should be aware that there is also a risk involved. For example, a trade in this currency pair may not be profitable if your stop is too tight. So, when is the best time to trade EUR/CHF?

Charts

If you're an investor, you need to familiarize yourself with charts of the EURCHF. This is a live representation of the Euro/Swiss franc exchange rate, and it's used by investors in the foreign exchange market, which has a $5,5 trillion daily turnover. Cornertrader is an excellent place to learn how to read charts of the EURCHF, as well as other currency pairs.

The Euro / Swiss Franc currency pair has a close relationship with its Swiss cousin, the Swiss Franc. Each country's currency is traded in millions of transactions a day. Whether you're looking to invest in a specific currency pair, or want to see how the currencies have performed compared to one another in the past, EURCHF charts will provide you with the information you need. You can choose between bar charts and candlestick charts.

Technical analysis

A technical analysis of the Euro / Swiss Franc currency pair will highlight several points. Most popular technical indicators such as Moving Averages, Oscillators and Pivots will be summarized on this gauge. These indicators can be used to identify the direction and strength of currency prices. By following these trends, you can profit from a potential change in currency value. However, technical analysis is not a panacea.

EURCHF fell to a seven-and-a-half-year low of 0.9875 on Wednesday. The momentum indicators are in negative territory, so further losses are probable in the near term. However, there are a few signs of easing. RSI has entered oversold territory, with a shallow downward slope. MACD has also deteriorated, but price is not yet approaching the red signal line.

EURCHF News - Bearish Outlook for the EUR

The recent EURCHF news has been quite bearish for the EUR. The currency pair is currently in an expanded flat correction and last week's downtrend was extended, with the EURCHF breaching the recent low of 0.9970. If you're interested in trading the EURCHF, it is advisable to take a risk entry with tight stops above recent highs and watch for a bear correction break. If you're new to the market, here's a look at the latest EURCHF news:

EURCHF is currently in an expanded flat correction

The EURCHF is in an expanded flat correction. It is a 3 - 5 wave correction that is currently in subwave C. It is expected to retest the fibonacci level before attempting a lower swing. Therefore, traders should wait for the rejection of this level and enter a short position with tight stops above the recent highs. Alternatively, traders should look for the bear correction break and take a risk entry.

The downward movement has been contained within a downward sloping channel since 2008. It will continue to do so for a few months. Wave Z will complete the correction and reach the 1.000-level. The EURUSD could be flat for a few months. However, the EU does not seem to be doing anything to address the issues that have slowed down the global economy. If this correction does not end, EURUSD will continue to weaken and could go even flat.

The SNB of Switzerland, or SNB, has sounded the alarm bells for a while, but so far they have done little to stop the pair from falling further. The Swiss National Bank has not yet lifted its floor, and has instead imposed a floor at the 1.20 level. The market speculated that the pair could be forced back above 1.25 or 1.30 levels, but it failed to do so. As of Thursday's close, the gap between 1.25 and 1.30 was filled, indicating that the pair may continue to fall further.

An expanded flat is the most common type of corrective pattern in the Elliott wave theory. This correction unfolds in three waves. Wave (a) is composed of three waves, while wave (b) is composed of five. Wave (c) is a false break of wave (a). It is possible that prices may dig into the 1.09 handle and continue down. If prices continue to fall, they may retest the 1.09 handle.

EURCHF's down trend continued last week

The EURCHF has continued its downtrend last week, marking lower highs and lows. The currency pair is trading below both its 50-day and 200-day simple moving averages. The currency pair's short-term momentum indicators are both showing negative bias, as MACD is below its red signal line and short-term momentum indicators are below zero. The downtrend is still in place, but it is showing signs of reversal.

While EURCHF has been trading near declining trend lines, it has paused for a few days. A bearish breakout of this pennant pattern could see the currency pair take off another 290 pips. Traders should monitor for rejection of this support level and take a risk entry with tight stops above recent highs. If the breakout occurs, EURCHF will break below its downward trend line, extending the downtrend.

In case of a reversal, the SNB has the option to raise the floor by a further 0,50%. This would put lower floors under immediate pressure and force the SNB to defend them. Alternatively, the SNB could have staged the lowering of the floor, which would have given professional investors time to hedge down. Private investors, however, would have been left with exposure to the lower floors.

The euro has been outperforming all other major currencies this month, while the Swiss franc has underperformed against the other majors. EUR/CHF has been capped at 1.0492/0515, with a breakout at this level likely to result in a further downward correction. Despite this, it is unlikely that this trend will be reversed anytime soon. This is a sign of increased intervention, but it should not be relied upon.

The daily chart of EUR/CHF offers decent bearish signals. The currency pair has shed over -5.5% since its April high. However, the 20-day eMA is serving as resistance and a bearish engulfing candle on Friday suggests a swing high is already in place. In addition, it is consolidating above its low from June 2017. If this trend continues, traders can consider a break below 1.0835, which would increase their reward to risk potential. Furthermore, minor rallies below Friday's high would further increase the risk-reward potential.

EURCHF breached 0.9970 low

The Swiss franc continues to rise, despite a sharp decline in the Euro. The CPI in Germany unexpectedly slowed in June, weighing down the Euro. The Aussie and Sterling remain weaker, but are supported by the rebound in oil prices. The Dollar is the third strongest currency, but is weaker than the Euro and Sterling. However, its bullish outlook may be shattered if EURCHF breaches 1.0214 minor resistance.

EUR/CHF has retested its 0.9970 low last week. This was the lowest intraday level since May 6, and a break below that level will confirm the bearish case. A sustained break below this level will resume a larger downtrend towards the 0.9650 long-term projection level. If the 1.0155 resistance level holds, the EURCHF will remain bearish. A break below this level will signal a return to the broader Euro weakness.

The trade balance in Canada is due at 8:30 am ET. It's expected to increase to a surplus of CAD 0.7 billion from a deficit of 1.1 bln in November. In addition, market volatility is likely to increase after a speech by Fed chairman Bernanke on the housing market. As for today's major economic data, the EUR was the best performing currency on Thursday, while the JPY lags behind. In addition, the RBA acknowledges that the revised GDP growth was lower than previously thought but does not explain why it is holding rates. In the meantime, EURUSD failed to break the second long target of 1.3330.

On Friday, the Eurozone's leaders appeared to have reached an austerity deal with the Troika. The deal, containing larger military cuts, was acceptable to the market. The news boosted risk assets and maintained expectations of further easing measures from the ECB. On Wednesday, the Greek cabinet will discuss the draft agreement to meet Troika demands. A vote on the deal could be finalized as early as Thursday.

EURCHF's down trend hit as low as 0.9864

The EUR/CHF pair continued its downtrend last week. The pair dipped as low as 0.9864, forming a temporary low. The pair has bounced off that low and is currently testing support at 1.3220. Further, if the bears succeed in breaking below this support, EUR/CHF could test its previous resistance at 1.3440, and even break the 0.9650 long-term projection level.

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