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EURCHF Forecast – November-3-2023

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In today’s comprehensive EURCHF forecast, we will first scrutinize the current economic conditions in Switzerland. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURCHF pair.

Dip in Swiss Confidence

As the year winds down, Switzerland’s consumer sentiment has dipped to its lowest in a year. The latest figures reveal a decline to -40 this quarter, a notable drop from the -27 recorded previously. This number is a stark contrast to the long-term average of -6 and is the lowest since the end of the previous year. This downtrend underscores growing worries among consumers about their financial prospects and the broader economic outlook.

The statistics reflect a significant drop in optimism for economic progress, with the expected economic development index plummeting to -37.3 from -6.8 in the third quarter. The outlook for personal financial situations has similarly darkened, sliding to -37.8 from -25.0. Additionally, reflections on past financial situations also fell sharply to -50.9 from -38.2. In a slightly more positive light, attitudes towards making major purchases have shown a slight improvement, with the index moving to a less negative -33.8 from the previous -38.0. This subtle shift suggests a slight easing in consumers’ reluctance to engage in larger investments.

EURCHF Forecast: Navigating the Bearish Channel

The EURCHF pair is currently navigating a bearish channel, with EURCHF bulls challenging the upper line of this channel, a formidable resistance. This bearish channel has remained unbroken since January 2023. Given the influence of this channel, we recommend exploring selling opportunities.

Please note, even if the price surpasses the bearish channel, it must settle above the horizontal resistance at 0.9691 to negate the bearish sentiment on the currency pair.

EURCHF Forecast - November-3-2023

EURCHF Forecast – Daily Chart

For a more detailed view, let’s zoom into the 4H chart for a comprehensive EURCHF forecast. The bullish bias prevails in the 4H chart, however, the RSI indicator shows divergence which is a signal for a trend reversal or price correction. Considering the EURNZD price in the daily chart, it is suggested to wait for the pair to close below the Kernel. If the price closes below the Kernel line, it is likely for the pair to continue its main bearish trend.

EURCHF Forecast - November-3-2023

EURCHF Analysis – 4H Chart

0.9691 plays the main resistance for the bearish scenario. The bulls must close above this level to invalidate the bearish scenario.

  • 3 November 2023
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