EURCHF appears to have returned to a neutral stance, following the recent rallies pullback from the 1.0914 point back under the 200-day simple moving average (SMA). The Ichimoku lines and cloud sponsor consolidation in price, as does the flattened 100-day SMA.
The MACD and the RSI reflect a stall in price action with weakened positive momentum. The MACD is falling below its red signal line in the positive zone, while the RSI hovers above the 50 threshold. Nevertheless, the bullish demeanour of the stochastic oscillator and the nearing of a positive overlap of the 100-day SMA by the rising slope of the 50-day one, suggest that advances remain on the table.
Overcoming the 200-day SMA at 1.0756, the red Tenkan-sen line at the 1.0781 level – which is the 50.0% Fibonacci retracement of the down leg from 1.1058 to 1.0504 – could impede advances for the 61.8% Fibo of 1.0847 and the five-and-a-half month peak of 1.0914. If buying interest endures, extending gains over the nearby 76.4% Fibo of 1.0927, the bulls focus may then turn to the 1.0967 and 1.1031 barriers above.
Should sellers steer below the 38.2% Fibo of 1.0716 and the blue Kijun-sen line, a crucial support area from 1.0651 – 1.0660 may prevent the decline from meeting the 23.6% Fibo of 1.0634 beneath. Further losses could test the 100- and 50-day SMAs currently at 1.0605 ahead of the trough of 1.0575.
In brief, a neutral-to-positive tone exists in the pair and a break above 1.0914 would reinforce this outlook. Yet, a break below 1.0575 could spark worries for negative moves, while a break above 1.1058 would cultivate a bullish bias in the short-to-medium term timeframe.
