EURCHF is determined to improve its fortunes above the 20-day simple moving average (SMA) for the first time since mid-September, with the price crawling as high as 1.0465 in mid-European trading hours on Thursday following the plunge to a six-year low of 1.0360 at the start of the month.
Although the 1.0480 bar is still laying overhead, the positive momentum in the RSI and its prolonged presence around the 30 oversold level suggests the bulls could keep the upper hand in the near term. The ongoing recovery in the MACD is backing this view as well, adding to hopes that a break above 1.0480 is possible. If true, the price could advance towards the 50-day SMA at 1.0540, while higher it could test the 1.0600 psychological mark before heading for the key 1.0650 handle.
Below the 20-day SMA, the 1.0380-1.0360 zone may attempt to block the way towards the 1.0300 psychological number, and hence prevent an outlook deterioration in the broad picture. In the event selling pressures persist below the latter, the spotlight will fall on the 1.0232 support area taken from April 2015.
Summarizing, the recent pickup in EURCHF might gain extra legs in the near-term, but buyers would probably wait for a clear break above 1.0480 before raising exposure to the market.
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