EUR/CHF Price Analysis: Bulls need a weekly close above 1.08
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- EUR/CHF is currently up over 250 pips from lows seen in May.
- The pair is yet to break out of a multi-year bearish channel.
EUR/CHF is currently trading near 1.0780 – up 280 pips from lows near 1.05 observed in May.
While the recovery from 1.05 looks impressive, the pair is still trapped in a falling channel represented by trendlines connecting May 2018 and April 2019 highs and September 2018 and March 2020 lows.
A weekly close above 1.08 would confirm a falling channel breakout or reversal higher from the two-year-long downtrend and open the doors for a test of psychological resistance at 1.10. A violation there would shift the focus to the 200-week simple moving average (SMA) located at 1.1132.
On the downside, a move below the higher low of 1.0712 created on July 24 would turn the tide in favor of the bears.
Weekly chart
Trend: Bullish above 1.08
Technical levels
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