Dukascopy

EUR/CHF 4H Chart: Trades near 61.80% Fibo

FX:EURCHF   Euro / Swiss Franc
The EUR/CHF exchange rate has been trading in a descending channel since mid-July. This descending channel has guided the common European currency towards July 2017 low level at 1.1194.
Currently, the currency pair has tested a resistance cluster formed by the weekly and the monthly pivot points at 1.1377. Also, the price is trading near the 61.80% Fibonacci retracement level at 1.1390.
If this resistance level holds, the pair could make a brief retracement towards a support cluster formed by the weekly R1 and the 200-hour SMA at 1.1317.
However, technical indicators on the 4(H) time frame suggest that the currency exchange rate might breach the 61.80% Fibo during the following trading session.
Comment:
The common European currency has been trading in a long-term descending channel against the Swiss Franc. This movement began after the currency pair reversed from the upper boundary of the channel pattern at 1.1873 on May 15.

However, the exchange rate has increased its trading range during the past few weeks. Currently, the pair is trading near the up border of the long-term descending channel at 1.1450 and could be set for a breakout.

If a support cluster formed by the 50-hour SMA and the weekly pivot point at 1.1405 holds, the next target for the currency exchange rate will be 1.1484 during the following trading sessions.
Comment:
The common European currency has been trading in an ascending channel against the Swiss Franc since early September. The exchange rate pullback from the lower boundary of the pattern at 1.1200 on September 7 and had since increased its trading range.
The currency pair breached the upper boundary of a long-term descending channel at 1.1456 during the Asian session on Tuesday.
If this resistance level formed by the upper border of the channel holds, the EUR/CHF pair could target a support cluster set by the 100-hour SMA and the weekly PP at 1.1417 today.
However, if the pair passes the resistance line, the currency exchange rate will aim at the 1.1503 area during the following trading sessions.
Comment:
The common European currency is trading in several channels patterns against the Swiss Franc. The most important of the pattern is the two-month ascending channel formed on September 12.
During the past week, the price level has surpassed the three SMAs and has reached the lower boundary of the two months ascending channel pattern at 1.1298.
Given that the 50-, 100-, and 200-hour simple moving averages are above the current price level, this could suggest that the decline of the EUR/CHF currency exchange rate will continue during the following trading sessions.
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