Technical analysis: EUR/CHF finds wobbly foothold near 200-MA

EURCHF’s attempts to recoup lost ground after plummeting towards the 200-period simple moving average (SMA) appear to be lacking decisive upward drive. The less responsive longer-term trend indicators, that being the 100- and 200-period SMAs, are still backing the positive structure, while the 50-period SMA has lost some of its bullish potency, but has yet to confirm that sellers have taken full command.

At the moment, the short-term oscillators are displaying mixed signals in directional momentum. The MACD, in the negative region, is slipping further beneath its red trigger line, while the RSI is struggling to make progress in bearish territory. That said, the positively charged stochastic oscillator is suggesting the bounce in the pair may develop a little more.

If the price’s bounce progresses, initial upside friction could commence around the red Tenkan-sen line at 1.0850, before buyers face a tough resistance zone from the 100-period SMA at 1.0862 until the blue Kijun-sen line at 1.0876. Breaching this barricade, the pair may meet the nearby 1.0885 high before eyeing the 1.0900 handle. Should the pair float above the Ichimoku cloud and the 1.0900 barrier, persistent buying interest could steer the pair towards the 1.0914 obstacle ahead of challenging the resistance section of 1.0934-1.0944.

If selling interest intensifies, preliminary attempts to impede additional declines may stem from the 1.0814 low and adjoining 200-period SMA at 1.0813 just beneath. If this border gives way, the price may then target the 1.0781-1.0794 support zone. Diving past this too, the bears could accelerate the price down towards the 1.0741 trough and the 1.0723 mark.

Summarizing, EURCHF is exhibiting negative tendencies and a break below the 200-period SMA could bolster the bearish outlook. That said, a shift above the 1.0885 high may nurture upside momentum.