EURCHF paused again around the bottom of the four-month-old descending channel following the slump below the long-term supportive trendline and the dip towards a five-month low of 1.0789. 


The ongoing consolidation could precede another upside reversal and the positive charge in the RSI and the Stochastics, which are deviating above their oversold levels, is endorsing that bullish scenario.

The bearish part of the story, however, is that the plunge below the trendline and the progressing negative cross between the 20- and 200-day simple moving averages (SMAs) foresee further deterioration in the short-term downward pattern.

A clear close below 1.0816 could raise negative risks in the market, likely bringing the 1.0785 support area next into view. Another extension lower may head for the 1.0733 region, which has been a major base to upside movements. Breaching that floor, the price may slide to meet the October low of 1.0651.

Should the bulls take control, traders will be looking for a break above the 1.0888 – 1.0915 zone before they target the channel’s upper line seen at 1.0947. Beyond that, the pair may push towards the 1.0980 – 1.1000 with scope to reverse the downtrend.

Summarizing, EURCHF is setting the stage for an upside correction, though the strengthening bearish trend signals reduce the case for a major improvement.


Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more