In this paper, we characterize graphs with circular chromatic number less than 3 in terms of certain balancing labellings studied in the context of signed graphs. In fact, we construct a signed graph which is universal for all such labellings of graphs with circular chromatic number less than $3$, and is closely related to the generic circular triangle-free graph studied by Bodirsky and Guzmán-Pro. Moreover, our universal structure gives rise to a representation of the relation algebra $56_{65}$. We then use this representation to show that the network satisfaction problem described by this relation algebra belongs to NP. This concludes the full classification of the existence of a universal square representation, as well as the complexity of the corresponding network satisfaction problem, for relation algebras with at most four atoms.