Currency Pair: EUR/CHF
Chart: 60 Min Charts
Short-Term Bias: Bearish

The EURCHF pushed lower over the week as market participants price-in a 50bp rate cut by the European Central Bank, and as investors curb their appetite for risk, the Swiss franc may continue to reap the benefit from its safe haven status. After slipping to a low of 1.4299 on 10/27, the pair bounced back to reach a high of 1.5885 on 12/15, but the lack of momentum to push higher favors a bearish forecast for the pair. The sharp pullback from the December high suggests that investors remain risk adverse, and I anticipate the euro-franc to face increased selling pressures over the week as risk trends continues to dictate price action in the currency market. However, the increasing gap from the 120 SMA suggests that a short-term retracement could be underway, but the downturn in the interest rate outlook for the euro is likely to drive the pair lower over the near-term.