Technical Analysis – EURCHF looks neutral-to-bullish; indicators are flat


Melina Deltas, XM Investment Research Desk

EURCHF seems to be range bound, something also reflected in the flattening technical indicators. The RSI is standing near the neutral threshold of 50, while the MACD is trying to jump above the zero line with weak momentum. The directionless Ichimoku lines and the steadied cloud further reflect this view, however, the 20- and 40-period simple moving averages (SMAs) are ready to post a bullish crossover in the short-term.

In case of positive pressures, initial tough resistance could develop from the zone of the cloud and the 1.0790 barrier. Pushing above the cloud, the 1.0847 resistance may also attempt to halt further bullish actions ahead of the 1.0870 obstacle.

If selling interest intensifies, support may originate from a trench of troughs from 1.0747 to 1.0730. Slipping below this boundary, the price may drop towards the 1.0660-1.0674 region.

In brief, the very short-term bias is neutral-to-bullish after the bounce off the 1.0730 support. A break above 1.0870 could shift the outlook to strongly positive.