Technical Analysis – EURCHF eases slightly but positive drive intact
- Anthony Charalambous
EURCHF is struggling to reach the upper boundary of the bearish channel as the 1.0963-1.0978 resistance section is impeding price gains. Positive momentum has yet to fully evaporate as the price is holding above the simple moving averages (SMAs). The rising 50-period SMA is looking set on completing a bullish crossover of the 100-period SMA, which would be a boosting dose to near-term price action.
Additionally, the Ichimoku lines have yet to signal serious waning in positive impetus. However, the short-term oscillators are suggesting negative momentum is growing. The MACD far above zero is just beneath its red trigger line, while the RSI is falling in bullish territory. The negatively charged stochastic oscillator is implying that the bears may be gaining the upper hand.
If sellers retain control, immediate support could develop from the red Tenkan-sen line at 1.0951 and the 200-period SMA underneath at 1.0945. Diving past the 200-period SMA, a region of support may form between the blue Kijun-sen line at 1.0939 until the 50-period SMA at 1.0920. Should the price steer even lower below the cloud, it may then meet support at 1.0910 before sinking to test the 1.0871-1.0882 base, which encompasses the February 22 low of 1.0875.
To the upside, buyers face a tough resistance band of 1.0963-1.0978, overlapped by the upper frontier of the descending channel. Triumphing over these boundaries could inspire the bulls to challenge the 1.1000 hurdle ahead of the neighbouring resistance barrier of 1.1012-1.1027.Summarizing, EURCHF holds a positive bearing for the upper band of the falling channel in the near-term. That said, the broader bearish bias prevails as the price adheres to the downward directing pattern.
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