Swiss franc could extend sharp rally vs euro on French budget woes
FXF•The Swiss franc has rallied against the euro as concerns about France’s budget weigh on the single currency. A break below 0.9227 could put the euro on a path toward earlier lows, while a rise above 0.95 could improve its outlook.
1. Euro faces technical pressure
The euro has pulled back against the Swiss franc after approaching a descending trendline and the 200-week moving average. Analysts call the retreat a “rejection,” a sign that momentum has shifted to euro sellers.
2. Key exchange-rate levels
The exchange rate is nearing the 200-day moving average at 0.9235 and the 0.9227 halfway point of the euro’s recent rally. A fall below that area could make a move to 0.9200 and this year’s low of 0.8969 more likely; the euro’s record low is below 0.87, set in 2015.
3. Potential euro recovery
If concerns about France’s budget ease and the euro recovers, a rise above the falling trendline, currently near 0.95, would make the euro’s outlook more positive.
