EURCHF has abated to the mid-Bollinger band around 1.0819 after recent attempts to appreciate, including the false break out of 1.0891, were capped by the upper Bollinger band and the tough resistance ceiling of 1.0857-1.0877. The simple moving averages (SMAs) are promoting an overall neutral-to-bullish demeanour in the pair.
The short-term oscillators reflect a situation of strained directional momentum but weakly lean towards somewhat retaining a positive tone. The MACD, slightly above the zero mark, is trailing below its red trigger line, while the RSI is at the 50 threshold, makings efforts to improve.
If price withdraws under the mid-Bollinger band at 1.0819, prompt sturdy support could develop from the 50-day SMA at 1.0797 until the 100-day SMA at 1.0778, a zone that surrounds the key trough of 1.0786. Fading further under these averages, the price may then meet the lower Bollinger band, in the vicinity of the 1.0756 low. Persistent selling could then put strain on the improving picture as the bears challenge the 1.0726-1.0733 support section.
On the flipside, a push up could encounter initial resistance at the 1.0847 level, which happens to be the 61.8% Fibonacci retracement of the down leg from 1.1058 until 1.0504. Driving the pair even higher, traders’ attention may then focus on the resistance region of 1.0857-1.0877, which has curbed upside advancements for over four-months. Should the bulls decisively conquer this buffer zone and the spike of 1.0891, the pair may then target the five-and-a-half month peak of 1.0914.
Concluding, EURCHF sustains a neutral-to-bullish bearing above the SMAs and the 1.0786 trough. A shift below the 200-day SMA at 1.0716 may trigger negative worries, while a push above 1.0877 may boost optimism.
Written by Admin
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