EUR/CHF is flat

• The EUR/CHF is flattened on Thursday, retreating the initial profits as the US dollar is strengthened by solid labor data.
• SNB officials remain open to greater flexibility, reinforcing the strength of the CHF in front of both the euro and the US dollar.
• The technical perspective remains bassist since the EUR/CHF remains close to the lower end of its range of several weeks, with 0.9300 acting as a critical support.

The euro (EUR) is flattened in front of the Swiss Franco (CHF) on Thursday, yielding initial profits as the EUR/CHF crossing during US negotiation hours. After a strong start of the day, the euro failed to maintain the impulse, being pressed by the generalized fortress of the US dollar and weekly labor data of the US stronger than expected, which reinforced the attractiveness of the dollar and weighed on the shared currency.

At the time of writing, the EUR/CHF is quoted around 0.9314, retreating a maximum intradic of 0.9328. Despite the setback, the crossing remains marginally higher, with an increase of 0.06% in the day.

The Swiss Franco continues to show a generalized fortress this year, with profits not only in front of the euro, but more notably against the US dollar, where almost 13% has been appreciated so far this year. This increase reflects a combination of persistent demand for safe refuge in global commercial tensions and deflationary pressures in the country.

The difference in monetary policy between the European Central Bank (ECB) and the Swiss National Bank (SNB) is also playing an important role. The ECB cut rates in June and is likely to Pause in July while dealing with commercial and geopolitical risks. In contrast, SNB has been more aggressive, reducing its rate to zero and silently introducing a negative rate on additional bank reserves. SNB officials have also declared that they are open to more cuts if necessary. As a result, the Franco remains sued, supported both for its safe refuge status and by the ultra-flexible policy of the SNB, which exerts pressure on the EUR/CHF torque.

From a technical perspective, the EUR/CHF remains under pressure, quoting near the lower edge of its consolidation range of several weeks between 0.9300 and 0.9400. After multiple failed attempts to break up in June, the pair has descended in July, with the 21 -day exponential mobile (EMA) average currently at 0.9352 acting as an immediate dynamic resistance. The recent price action suggests that a bassist impulse is accumulating, with sellers observing a possible break below the key support in 0.9300.

Impulse indicators reinforce the bearish bias. The Relative Force Index (RSI) is in downward trend and is currently 42.10, below the 50’s neutral brand, indicating a weakening of the bullish impulse. Meanwhile, the average directional index (ADX) has risen to 21.18, hinting at a developing trend after a long period of lateral movement. A sustained closure below 0.9300 would confirm a break down and would expose the torque to greater losses, possibly towards the area of ​​0.9250. On the positive side, a recovery is needed above 0.9350 to change the short -term perspective from new to neutral.