The price action of the EURCHF is currently consolidating above the previous swing low at 1.07000, which represents an early indication that the market may be due for a bullish correction. Moreover, the price action completed a Descending Wedge, which is a type of pattern that, when found near the bottom of a downtrend, signifies a likely bullish reversal.
If the price action manages to penetrate above the 20-day MA (in red), it would be then able to attempt rallying towards the 23.6 per cent Fibonacci retracement level at 1.07575, which is currently being crossed by the 50-day MA (in green). This makes it an even more prominent resistance level.
The next bullish target is represented by the 38.2 per cent Fibonacci at 1.07920, which, in turn, is currently converging with the 100-day MA (in blue).
If the price action manages to penetrate above the 20-day MA (in red), it would be then able to attempt rallying towards the 23.6 per cent Fibonacci retracement level at 1.07575, which is currently being crossed by the 50-day MA (in green). This makes it an even more prominent resistance level.
The next bullish target is represented by the 38.2 per cent Fibonacci at 1.07920, which, in turn, is currently converging with the 100-day MA (in blue).