Insights 
VT 
The drop of EUR/CHF below the April uptrend line indicates renewed bearish momentum. It is now testing the August low with resistance forming near 0.9320, which may act as a short-term barrier.
If this resistance holds, the decline could persist with support expected between 0.9220 and 0.9210. The recent high at 0.9320 is therefore a key point to watch for potential rebound or decline.
Euro Facing Resistance
Elsewhere, the EUR/USD is facing resistance around 1.1680 as the US dollar shows strength despite market expectations for a dovish Fed. Traders await further guidance from ECB and Fed speakers for direction.
The GBP/USD is gaining traction, challenging the 1.3450 mark, buoyed by robust UK data and a weaker Greenback. Meanwhile, gold remains close to its high of $4,250, driven by geopolitical risks and economic concerns.
In the cryptocurrency markets, Bitcoin is trading around $110,500 amid a third day of decline, while altcoins remain subdued. Solana is recovering towards $200, mirroring a positive turn in broader crypto sentiment. The S&P 500 exhibits market indecision, having shown an “inside day” pattern following recent volatility.
The EUR/CHF pair’s drop below its April uptrend line signals that downward pressure is building once again. We are now testing the lows we saw back in August, with any small bounces likely to fail around the 0.9320 resistance level. For derivative traders, this suggests a bearish outlook for the pair in the weeks ahead.
Swiss Francs Gaining Appeal
This weakness in the euro against the franc is happening as the Swiss franc regains its classic safe-haven appeal. Recent data from earlier this month showed Swiss inflation at 1.9%, slightly above consensus and reinforcing the Swiss National Bank’s hawkish stance on price stability. This contrasts sharply with the dovish sentiment from other central banks, making the franc an attractive hold during uncertain times.
Globally, markets are nervous, which supports holding Swiss francs over euros. The US Federal Reserve is expected to stay dovish, especially after last week’s US CPI print came in at a manageable 2.1%, giving them room to consider rate cuts. This has weakened the US dollar broadly and fueled a flight to assets perceived as safe, a trend we haven’t seen this strongly since the market jitters of 2024.
The surge in gold past $4,250 per ounce highlights this deep-seated anxiety, driven by ongoing trade disputes and political instability. The CBOE Volatility Index (VIX) has reflected this nervousness, holding stubbornly above 22 for the past two weeks. These are clear signs that investors are de-risking and seeking shelter from volatility.
In response, we see an opportunity in buying EUR/CHF put options that would profit from a continued decline toward the 0.9220/0.9210 support zone. Traders could also consider selling call options with a strike price at or above the 0.9320 resistance level to collect premium, betting that the pair will not be able to reclaim that high. This strategy capitalizes on the view that any upward movements will be short-lived.
This move into traditional safe havens like gold and the franc comes at the expense of other assets. We’ve seen indecision in the S&P 500 and a clear reduction in exposure to cryptocurrencies, with Bitcoin struggling to hold the $110,000 level. Traders are showing a distinct preference for tangible or historically stable assets over digital or growth-oriented ones.
