EURCHF is trading at its lowest levels since July 2015 following news that the government will soon ease its coronavirus lockdown. As of this writing, the currency pair is down for the fifth consecutive day. It is in the red by almost 80 pips from where it opened today, trading at 1.0508.
Newspapers Tages-Anzeiger and Neue Zuercher Zeitung reported earlier today that the Swiss government will soon announce its plans to remove restrictions. Health Minister Alain Berset is anticipated to reveal the details. However, the current information suggests that the exit will come in three phases. Some businesses in the services industry like parlors, clinics, and massages are expected to reopen on April 27. Meanwhile, schools are said to open on May 11 and bars and restaurants could follow by early June.
Consequently, this news of a return to normalcy in Switzerland was bearish for EURCHF.
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On the weekly time frame, it can be seen that EURCHF has broken support at its 2016 and 2017 lows. If sellers continue to dominate trading in the next few days, we could soon see the currency pair fall to its 2015 lows around 1.0280.
On the other hand, if sellers lose their momentum, EURCHF could retrace some of its losses. Near-term resistance is at 1.0830 where the falling trend line (from connecting the highs of April 22, 2018 and April 28, 2019) coincides with the currency pair’s 2016 and 2017 lows.
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