Currency Pair: EUR/CHF
Chart: 15 Min Charts
Short-Term Bias: Long
After finding support near 1.6100, a short-term correction looks to be underway for the EUR/CHF.
Analysis Update
The EUR/CHF has lost momentum, and has fallen below the 120 SMA line during the past few hours of trading. The downfall has triggered an oversold RSI signal, and may work its way back above 1.636 (21.4% Fib level).
The oversold signal has led us to hold our bullish outlook for the euro, and anticipate the pair to retrace back above the 120 SMA over the next few trading session. If price action breaks above 1.6200, we will hold 1.6161 (38.2% Fib level) as the new support level for the currency pair, and could peak near 1.6223 (78.6% Fib level). However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After finding support near 1.6100, a short-term correction looks to be underway for the EUR/CHF. During yesterday’s session, price action has moved well above the upper channel, but has yet to trigger a clear overbought RSI signal.
The 120 SMA has also crossed above the upper channel, and looks to be changing course. The reversal in the 120 SMA has led us to hold a bullish outlook for the near-term and we expect the pair to work its way back to 1.6200. If the uptrend continues to hold, the reversal may lead the pair to test for resistance near 1.6223 (78.6% Fib level).
