20180904- EUR/USD Head and Shoulders Formation – update EUR/CHF
The breakthrough of the neckline of the Head and Shoulders formation has been proven as a false signal so far. The EURUSD has recovered above it again.
Nevertheless there is still Euro-Weakness in the market.
For the EURCHF also a Head and Shoulders formation has occured as well. On the contrary to the EURUSD in the EURCHF the formation has caused a sharp drop of the EUR against the CHF down to a low to 1.1240. (see second chart below) The Swiss Frank is profiting from its appeal as a safe have in the current market conditions with looming import taxes and volatile emerging market currencies.
Now it will be interesting if there is a recovery back up to 1.14 or if this goes further down with targets of 1.10 or 1.08 EURCHF. On lower levels of the EURCHF interventions of the SNB could occur.