EURCHF has faded from the near 20-month peak of 1.1151 below the Ichimoku cloud but negative momentum seems to be dwindling around the 100-day simple moving average (SMA) at 1.0943. The 100- and 200-day SMAs are shielding price improvements, while the 50-day SMA is reflecting a price preference to steer lower.
The blue Kijun-sen line is signalling some waning in negative sentiment. Moreover, the short-term oscillators are demonstrating that negative momentum is lacking the necessary impetus to dive the price down. The MACD, in the negative region, is glued below the red trigger line, while the RSI is attempting to improve beyond the 50 level.
If negative pressures continue to evaporate, the price may push higher into the cloud and meet initial resistance from the blue Kijun-sen line at 1.1000 before tackling the 50-day SMA at 1.1017. Stepping back over the cloud, the next resistance barrier is the 1.1062-1.1075 zone. Recapturing higher ground could then encourage buyers to challenge the 1.1118 high.
If sellers resurface and dip the pair below the 100-day SMA at 1.0943, a cluster of support obstacles could impede further price declines from unfolding. These include the lows of 1.0931 and 1.0921 respectively ahead of the inside swing high of 1.0914, achieved in June 2020. Diving from here, the reinforced support section of 1.0857-1.0891 could prove to be a durable obstacle to conquer.
Summarizing, EURCHF is emanating a neutral-to-bullish tone as the price resides in the vicinity of the 100-day SMA. A shift beneath the 200-day SMA could strengthen negative tendencies.
Written by Admin
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