EUR/CHFhas seen a pullback but remains on firm footing for the moment
Short-term momentum favours the Euro, but can it convert to further gains?
EUR/CHF TECHNICAL ANALYSIS
Similar to EUR/USD, EUR/CHF made a 7-year low 2-weeks ago at 0.99728.
It has not traded at these levels since the Swiss National Bank (SNB) abandoned protecting the so-called “Swissy” from what it perceived to be overvaluation.
Yesterday’s price action saw EUR/CHF sneak below support at 1.02790 and touch the 10 and 21-day simple moving average (SMA) before bouncing back above 1.02790.
The next few sessions might be significant for the cross, as a continuation higher is a rejection of that attempt to go lower. While a decisive move below the 21-day SMA may signal short-term bullish momentum has evaporated.
To the downside, immediate support could be at yesterday’s low of 1.02646 which is also the current level of the 21-day SMA. Further down support may lie at the prior lows of 1.01550 and 0.99728.
On the upside, the 55 and 100-day SMAs are straddling the recent peak of 1.04024 and might provide a zone of resistance, as well as the prior high of 1.04480.
A pivot point at 1.05117 also has a descending trend line dissecting near it and could offer resistance. Above there the 200-day SMA is also near the February high of 1.06091, offering potential resistance.
Short-term momentum favours the Euro, but can it convert to further gains?
EUR/CHF TECHNICAL ANALYSIS
Similar to EUR/USD, EUR/CHF made a 7-year low 2-weeks ago at 0.99728.
It has not traded at these levels since the Swiss National Bank (SNB) abandoned protecting the so-called “Swissy” from what it perceived to be overvaluation.
Yesterday’s price action saw EUR/CHF sneak below support at 1.02790 and touch the 10 and 21-day simple moving average (SMA) before bouncing back above 1.02790.
The next few sessions might be significant for the cross, as a continuation higher is a rejection of that attempt to go lower. While a decisive move below the 21-day SMA may signal short-term bullish momentum has evaporated.
To the downside, immediate support could be at yesterday’s low of 1.02646 which is also the current level of the 21-day SMA. Further down support may lie at the prior lows of 1.01550 and 0.99728.
On the upside, the 55 and 100-day SMAs are straddling the recent peak of 1.04024 and might provide a zone of resistance, as well as the prior high of 1.04480.
A pivot point at 1.05117 also has a descending trend line dissecting near it and could offer resistance. Above there the 200-day SMA is also near the February high of 1.06091, offering potential resistance.