EUR/CHF had been trading in a medium-term ascending wedge since late January prior to breaching this pattern to the upside last week. However, the pair has failed to accelerate from this pattern and thus has been moving sideways with a slight upward trend ever since.
This breakout could guide the Euro higher during the following weeks towards a long-term trend-line located near 1.2025. In the short term, the pair is still likely to edge higher during the following session. A steep upward movement could be limited by the weekly R1 at 1.1920, as technical indicators are already located near the overbought territory.
On the other hand, weekly indicators flash bearish signals, thus suggesting that some slight correction south could occur within the following days. The nearest resistance is set by the 55– ad 100-hour SMAs and the breached wedge in the 1.1860/75 range. The weekly PP and the 200-hour SMA are located circa 1.1840.
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