EUR/CHF Price Analysis: Rejected at two-year-long downtrend

EUR/CHF's recovery rally stalls near a 24-month falling trendline.
A breakout could power stronger gains toward 1.10.

Omkar Godbole FXStreet Contributor

EUR/CHF's ascent from lows near 1.05 observed in May looks to have stalled at the resistance of the trendline falling from May 2018 and April 2019 highs.

The pair failed to close last week above the trendline resistance. The bulls made another attempt to scale the long-term hurdle on Monday but failed.

At press time, the pair is trading largely unchanged on the day near 1.0816 and the trendline hurdle is located at 1.0872. A weekly close above that level would confirm an end of the two-year-long downtrend and could invite stronger chart-driven buying, leading to the 100-week simple moving average (SMA) at 1.1063.

The probability of the pair charting the bullish breakout this week would weaken if the support at 1.0744 is breached. That would invalidate the higher lows pattern on the 4-hour chart and will likely yield a deeper pullback.

EUR/CHF weekly chart

Trend: Neutral

Technical levels

1. R3 1.0958
2. R2 1.0924
3. R1 1.087
PP 1.0836
1. S1 1.0781
2. S2 1.0747
3. S3 1.0693

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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