EUR/CHF Technical Analysis: Green shoots of recovery ahead of SNB

The bullish divergence of the relative strength index and stochastic and the bullish crossover on the moving average convergence divergence (MACD), as seen in the EUR/CHF daily chart, indicates the pair is gearing up for an upside break of the trendline connecting the July 16 low and Aug. 28 low.
A close above the trendline would confirm a short-term bullish reversal and could yield a sustained move toward 50-day moving average (MA), currently located at 1.1423.
The signs of a bullish reversal ahead of the Swiss National Bank (SNB) rate decision likely indicate that investors are expecting the central bank to strike a dovish tone. After all, the CHF has appreciated sharply in the last few weeks.

Omkar Godbole FXStreet Contributor

Daily Chart

Spot Rate: 1.1295

Daily High: 1.1299

Daily Low: 1.1283

Trend: Cautiously bullish

Resistance

R1: 1.1312 (trendline hurdle)

R2: 1.1343 (Sept. 11 high)

R3: 1.1423 (50-day MA)

Support

S1: 1.1267 (10-day MA)

S2: 1.1223 (Sept. 18 low)

S3: 1.1183 (Sept. 7 low)

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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