- 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.
Trend: Oversold bounce
|Today last price||1.0745|
|Today Daily Change||0.0002|
|Today Daily Change %||0.02|
|Today daily open||1.0743|
|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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