EUR/CHF Price Analysis: Eyes recovery rally with triangle breakout on 1H


  • EUR/CHF's hourly chart is reporting a triangle breakout.
  • The RSI on the 4-hour chart has diverged in favor of the bulls. 
  • A corrective bounce could be in the offing. 

EUR/CHF's sell-off seems to have run its course and a corrective bounce could be in the offing, technical charts indicate

To start with, the hourly chart shows a symmetrical triangle breakout, a bullish reversal pattern. 

Further, the 4-hour chart relative strength index (RSI) has produced a bullish divergence, which occurs when the indicator prints higher lows, contradicting lower lows on price. 

A bullish divergence indicates seller exhaustion and often paves the way for a corrective bounce. What's more, the 14-day RSI is reporting oversold conditions with a below-30 print. 

So, it appears as though the sell-off the December 2019 high of 1.1027 has run out of steam at 1.0729 - the 33-month low reached on Monday. 

The pair may rise to the descending 10-day average at 1.0771. The bearish view would be invalidated only if the spot manages to close above that bearish MA. 

Hourly chart

Trend: Oversold bounce

Technical levels

EUR/CHF

Overview
Today last price 1.0745
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.0743
 
Trends
Daily SMA20 1.0827
Daily SMA50 1.0899
Daily SMA100 1.0926
Daily SMA200 1.1032
 
Levels
Previous Daily High 1.075
Previous Daily Low 1.0719
Previous Weekly High 1.0834
Previous Weekly Low 1.0732
Previous Monthly High 1.1044
Previous Monthly Low 1.0838
Daily Fibonacci 38.2% 1.0738
Daily Fibonacci 61.8% 1.0731
Daily Pivot Point S1 1.0725
Daily Pivot Point S2 1.0706
Daily Pivot Point S3 1.0694
Daily Pivot Point R1 1.0756
Daily Pivot Point R2 1.0768
Daily Pivot Point R3 1.0787

 

 

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