News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Fading Bearish Momentum Signals a Potential Shift in Control Toward the Bulls
Forex
Economic
Summary:
This indicates that bearish selling pressure is fading rapidly, while a bullish crossover of the signal lines appears imminent.
Buy
CLOSEDEURCHF
End Time
0.91391
Entry Price
0.92180
TP
0.90800
SL
0.91361 -0.00240 -0.26%
264
Points
Profit
0.90800
SL
0.91655
CLOSING
0.91391
Entry Price
0.92180
TP
The European Central Bank (ECB) elected to maintain its benchmark interest rates during its February policy deliberations, a decision that aligned seamlessly with broad market expectations. However, the accompanying rhetoric possessed a notably more hawkish undertone, as the governing council emphasized the underlying resilience of economic growth within the Eurozone. President Christine Lagarde appeared dismissive of the significance of recent inflationary moderation and brushed aside mounting concerns regarding the Euro's recent appreciation. She asserted that the common currency remains well-situated within its historical average range, signaling that currency volatility is not currently a primary concern for monetary policymakers.
Regarding broader economic activity, current estimates suggest that Eurozone GDP is on track to expand between 0.2% and 0.3% on a quarter-over-quarter basis, bolstered largely by robust domestic demand and a resilient services sector. Recent Purchasing Managers' Index (PMI) data indicates a narrowing performance gap between the Eurozone's core and periphery economies. While the manufacturing sector and industrial production continue to grapple with persistent structural weakness—exacerbated by periods of heightened volatility—analysts expect that fourth-quarter GDP figures will avoid downward revisions, despite the lackluster industrial output recorded in December.
Furthermore, final Composite PMI data for January suggests a marginal deceleration at the start of the fiscal year. Nevertheless, growth projections for the first quarter remain stable at approximately 0.2% inter-quarterly. Simultaneously, investor sentiment within the region experienced a remarkable recovery in February. The Sentix Investor Confidence Index surged to 4.2, up from -1.8 in January. This represents the third consecutive monthly advance, marking the highest confidence level recorded since July 2025 and reflecting a significant shift toward regional optimism.
The focus now shifts to Switzerland, where January inflation data is slated for release this Friday. The consensus anticipates that annual inflation will remain contained at approximately 0.1%. Against this backdrop, Swiss National Bank (SNB) President Martin Schlegel recently reiterated the challenges of a persistently low-inflation environment and a 0% policy rate. Schlegel reaffirmed the SNB's commitment to price stability within its 0–2% target range and signaled a clear preference for FX market intervention over further rate cuts, noting that the current policy stance remains appropriate given the expectation of a gradual inflationary pickup in the coming months.
Technical Analysis
From a technical perspective, EUR/CHF recently breached the 0.9144 support level, momentarily striking a local low of 0.9096 before staging a sharp rebound. If the price successfully reclaims and stabilizes above the aforementioned 0.9144 level, this price action could be classified as a "shakeout." Such a development typically precedes a more pronounced bullish impulse, with the initial objective being the 0.9118 zone, representing a key local technical milestone.
The structural outlook is further defined by the 100 and 200-period Moving Averages on the 4-hour chart, situated at 0.9235 and 0.9268, respectively. These levels reside near the primary resistance zone and will act as long-term targets for the bulls. Currently, the 9-period Exponential Moving Average (EMA) is on the verge of being breached to the upside, coinciding with the recovery of the support floor. These combined signals suggest that a bullish move is gathering significant momentum from this value area.
Our momentum analysis via the MACD provides further confirmation of bearish exhaustion. We are observing a clear bullish divergence, with the histogram printing progressively smaller red bars with diminishing depth. This indicates that bearish selling pressure is fading rapidly, while a bullish crossover of the signal lines appears imminent.
Given the failure of the bears to maintain control below the local lows and the emerging technical confluence, long-side positions are increasingly favored in this zone. As the technical structure pivots, the bulls appear poised to take control of the narrative in the upcoming sessions.
Trading Recommendations
Trading direction: Buy
Entry price: 0.9146
Target price: 0.9218
Stop loss: 0.9080
Validity: Feb 20, 2026 15:00:00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.