EURCHF has been trading in a sideways manner during the past few weeks, staying confined in a relatively narrow range between 1.1445 and 1.1305. Attesting to the neutral short-term bias, price action is also taking place between the 50- and 200-day simple moving averages (SMAs).
Momentum oscillators are also flat, with the RSI resting near its neutral 50 level, while both the MACD and its red trigger line are close to zero.
Potential declines in the pair could meet initial support near the crossroads of the 1.1305 level and the 50-day SMA, which is currently at 1.1313. If the bears violate that area, that would turn the bias to cautiously negative, opening the door for a test of 1.1255 – the January 24 low.
On the other hand, advances in the market may stall near the 200-day SMA at 1.1410. Even higher, the 1.1445 level would be eyed, with another break above that hurdle turning the short-term picture to cautiously positive.
The medium-term outlook is also neutral, with price action taking place between 1.1180 and 1.1500 since September.
Summarizing, a break above 1.1445 could signal more advances, while a move below 1.1305 may be the trigger for greater declines.
