Looking at the chart on an annual basis, we will see that at the beginning of the year, the EUR/CHF pair dropped drastically to a critical 1.05000, the lowest level in the last five years.
After that, the EUR/CHF pair went up and erased all losses but failed to stay above the 1.08500 level at the beginning of the year. That resistance seems to be a huge hurdle for the euro this year.
The coronavirus that hit the whole world this year has affected the entire world economy, and many countries are in lockdown due to many patients. In that case, investors are running into safe currencies such as the Swiss franc and the Japanese yen.
As the coronavirus’s pressure dropped in the middle of the year, the euro managed to recoup certain losses.
In the last month, due to the increase in the number of newly infected with coronavirus, there is pressure on the euro again because European countries are in lockdown, and the EUR/CHF pair has started to fall again.
Even news of potentially successful vaccines has failed to weaken the Swiss franc and the Japanese yen to such an extent. Later in the day, we have a continuation of the EU summit; we can expect statements from various officials about potential irregular steps to combat coronavirus’s effects or introduce new measures against coronavirus.
Switzerland’s exports fell for the second month in a row in October, data from the Federal Customs Administration showed on Thursday. Exports fell by a real 0.5 percent monthly in October, after falling by 1.8 percent in September. Imports fell 3.4 percent monthly in October, after rising 3.4 percent in the previous month.
The bad news did not affect the CHF’s weakening; however, the strength remained at approximately the same level. We need to monitor the Fibonacci level of 23.6% and a possible decline to the Fibonacci level of 38.2% to 1.07500
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