EUR/CHF Technical Forecast
- Stalled Bullish Momentum
- Positive outlook while above 1.0811
EUR/CHF Price – Indecisive Traders
Last week, EUR/CHF hit a near two-months high of 1.0838. However, the price retreated after and closed a weekly candlestick with a Doji pattern reflecting the market’s indecision.
Alongside that, the Relative Strength Index (RSI) remained flat above 50 highlighting paused bullish momentum.
EUR/CHF Daily Price Chart (SEPTEMBER 1, 2018 – August 13, 2020) Zoomed Out
EUR/CHF Daily Price Chart ( JUNE 16 – August 13, 2020) Zoomed IN
In mid-July, EUR/CHF rebounded from the 50-day average then climbed to the current 1.0701-1.0811 trading zone reflecting that bulls had the upper hand. However, the pair failed last week on multiple occasions to rally to the higher trading zone rebuffing repeatedly bulls efforts to keep steering the price higher.
A daily close below the low end of the current trading zone may guide EUR/CHF’s fall towards the weekly support level at 1.0605 (March 2020 high).
On the other hand, a daily close above the high end of the zone may encourage bulls to rally the price further towards the monthly resistance level at 1.0962 ( July 2019 low).
EUR/CHF Four Hour Price Chart ( July 24 – August 13, 2020)
Yesterday, EUR/CHF rebounded from the downward sloping trendline originating from the August 6 high at 1.0822 indicating a weaker bullish sentiment.
To conclude, while bullish bias still in place a break below bullish trendline originated from the July 24 low at 1.0712 would reflect more hesitant bulls. Therefore, a break below 1.0679 could send the EURCHF towards 1.0611, while a break above 1.0838 may cause a rally towards 1.0911. As such, the support and resistance levels underlined on the four-hour chart should be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
