EURCHF’s Upside Looks Bleak as Seller’s Lead

Technical analysis of Forex market

EURCHF has plunged back below the simple moving averages (SMAs) after positive price action was halted around the 1.0763-1.0771 resistance band. The bearish bearing of the SMAs is backing the pair’s negative trajectory.

The short-term oscillators are also signalling that downside pressures are growing. The MACD, in the positive section, is dipping and has neared the red trigger line, while the RSI is diving in bearish territory. The strong negative charge in the stochastic oscillator is endorsing the control sellers have acquired.

As things stand, the pair could face an immediate support band from 1.0710 until the 1.0700 handle. Should the bears manage to steer the price beneath the 1.0700 hurdle, support could transpire from the 1.0691 low ahead of the 1.0679 critical trough. Sinking underneath the 11-month trough, the price may target the 1.0659 lows from November 2020.

Otherwise, if buyers push back, initial upside friction could stem from the 50-period SMA at 1.0721. If positive impetus grows, the price may meet the 100-period SMA at 1.0750 before challenging the resistance boundary of 1.0763-1.0771. Conquering this could catapult the price towards the zone between the 1.0800 barrier and the 200-period SMA at 1.0807.

Summarizing, EURCHF is exhibiting a neutral-to-bearish tone. An unfolding bullish bias seems doubtful as sellers are dictating volatility in the pair.