EURCHF has been moving sideways since the rebound on the 28-month low of 1.0810, reached on September 4. The upper boundary is the 1.1055 resistance level, near the 38.2% Fibonacci mark of the downleg from 1.1470 to 1.0810, and the lower boundary is the 1.0830 support level.
In the very short-term, the market could maintain a downward move if the RSI keeps moving below 50 and the MACD extends its momentum below the trigger line. Regarding the trend, the 20-day simple moving average (SMA) continues to lose strength below the 40-day SMA.
Should the pair stretch south, the 1.0810 low could provide immediate support before the pair starts a strong bearish run towards the 1.0650 support, identified by the trough on April 2017.
On the flipside, a potential bullish move could drive the price until the 20- and 40-SMAs currently at 1.0900 and 1.0930 respectively. If traders continue to buy the pair, the price could rise until the 23.6% Fibonacci of 1.0970
To sum up, the market is expected to hold neutral in the medium-term and bearish in the short-term.
