EUR/CHF Continues Strong Downtrend: Identifying Bearish SetupJoachim Nagel, the Chief of Bundesbank and a key policymaker at the European Central Bank (ECB), recently participated in a panel discussion entitled "The Macroeconomic Outlook: Growth, Inflation, and Risks." This engaging event was organized by the Group of Thirty and took place in Amsterdam.
Analyzing the EUR/CHF currency pair, we observe that it remains firmly entrenched in a persistent downtrend, characterized by the formation of lower highs and lower lows. Recently, the price experienced a rebound upon reaching the 50% Fibonacci retracement level, coinciding with a dynamic trendline resistance. Consequently, our current perspective aligns with the overall bearish trend, suggesting the opportunity to consider a bearish position.
In summary, given the prevailing downtrend of the EUR/CHF, reinforced by the price's interaction with the 50% Fibonacci retracement level and dynamic trendline resistance, we are inclined to follow the bearish trajectory and explore the possibility of taking a bearish position.
