EUR/CHF Price Analysis: 1.07 is the level to beat for the bulls
|- EUR/CHF holds above the 50-day simple moving average support.
- A move above 1.07 is needed to invalidate the bearish signs on the weekly chart.
EUR/CHF is holding above the 50-day simple moving average (SMA) support. However, for the outlook to turn bullish, the pair needs to establish a strong foothold above 1.07.
At press time, the currency pair is trading at 1.0638 and the ascending or bullish 50-day SMA is located at 1.0632.
Indeed, the daily chart is reporting a bullish cross of the 50- and 100-day SMAs. The MA studies, however, are backward-looking and unreliable. A more credible sign of bullish breakout would be a move above 1.07.
That would invalidate the buyer exhaustion signaled by the upper wicks attached to the current and the previous weekly candles and open the doors for a re-test of resistance of a two-year-long descending trendline, currently at 1.0841.
On the downside, the 100-day SMA located at 1.0608 is key support, which, if breached, would shift the focus to 1.0503 (May low).
Weekly chart
Trend: Neutral
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.