After testing the lower boundary of the trend channel, EURCHF is attempting to move towards the upper boundary, aided by a shift from the Swiss National Bank (SNB). The latest balance sheet from the SNB indicates that the bank is now positioned on the selling side of the Swiss Franc. Despite weakness in the Euro, there is positive pressure on EURCHF. Markets anticipate a rate cut from the SNB in the summer.

(EURCHF Daily Chart)

The downtrend that began in early 2023 persists. Currently, EURCHF is testing the mid-point of the trend channel. Additionally, in close proximity to this area, the 0.9425-0.9460 horizontal resistance zone intersects with the mid-point, creating a significant resistance barrier for EURCHF. Unless there is an upward breakthrough, despite the shift from the SNB, downward pressures may persist. Furthermore, with the latest low surpassing the previous one, there is a good chance that it will develop into a triangle formation below the horizontal resistance.

On the contrary, in the event of a breakout, EURCHF could potentially extend its gains towards the upper boundary of the trend channel, currently situated at 0.9558.