Euro Price Technical Forecast: EUR/GBP, EUR/CHF- Key Levels to Know
EUR/CHF, EUR/GBP Outlook
EUR/GBP, EUR/CHF– Price Action
Last week, Euro firmed slightly against British pound. On Friday, EUR/GBP closed the weekly candlestick in the green for the first time in six weeks with 0.7% gain. On the other side, EUR/CHF declined then closed on Friday in the red with a 0.7% loss.
Alongside this, the Relative Strength Index (RSI) rebounded form 30 then remained above the oversold territory highlighting a weaker downtrend momentum on EUR/GBP. The oscillator crossed below 50 on Friday, indicating to the end of the uptrend momentum on EUR/CHF.
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EUR/gbp DAILY PRICE CHART (AUG 20, 2017- SEP 30, 2019) Zoomed Out
EUR/GBP DAILY PRICE CHART (JULY 29 – SEP 30, 2019) Zoomed in
Looking at the daily chart, we notice on Sep 20 EUR/GBP U- turned form 0.8786, and since then the pair corrected higher creating a higher high at 0.8905. Today, the price declined eyeing a test of a lower trading zone 0.8791- 0.8852.
Hence, a close below the high end of the zone could see EURGBP trading towards the low end. Further close below the aforementioned Sep 20 low could send the price towards the vicinity of 0.8726- 23. Although, the daily and weekly support levels underlined on the chart (zoomed in) should be considered.
That said, any failure in closing below the high end of the zone could return EURGBP to the vicinity of 0.8880-90. Further close above could cause a rally towards 0.8995. However, in that scenario buyers need to pay a close attention on the weekly resistance level marked on the chart.
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EUR/CHF DAILY PRICE CHART (April 29, 2017- SEP 30, 2019) Zoomed Out
EUR/CHF DAILY PRICE CHART (JuLy 5- SEP 30, 2019) Zoomed In
From the daily chart, we notice on Sep 20 EUR/CHF fell to a lower trading zone 1.0810 – 1.0950 and since then the price has been declining and looking for a test of the low end of the zone.
Hence, a close below the low end of the zone could see EURCHF trading even lower towards 1.0623. Nevertheless, the weekly support levels underscored on the chart (zoomed in) should be kept in focus.
On the flip-side, any failure in closing below the low end could push EURCHF towards the high end of the zone, contingent on clearing the daily resistance levels underlined on the chart. Further close above 1.0960 might send the price even higher towards 1.1001. Although, the weekly resistance level marked on the chart would be worth monitoring.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.