EURCHF’s gradual appreciation remains fairly subdued, confined between the 1.0876 top and a base from 1.0700 until 1.0721. The simple moving averages (SMAs) convey a minor bullish tone, while the short-term oscillators reflect weakness in positive momentum.
The MACD, in the positive region, is weakening above its red signal line, while the stochastic oscillator is strengthening its bearish demeanour. The RSI is also reflecting signs of fading, yet remains above the 50 level.
If selling interest persists, first critical support may stem from the 1.0798 low before encountering the 1.0794 to 1.0775 zone, which comprises of all the SMAs. Dipping under these obstacles, the 1.0758 and 1.0745 troughs may attract traders’ attention. Further loss of ground may then be challenged by a foundation section from 1.0721 to 1.0700.
Alternatively, if buyers re-emerge, resistance may originate from the band of highs from 1.0846 – 1.0850. Overrunning these barriers, the price may test the recent near three-month peak of 1.0876 before tackling the 1.0889 obstacle from June 8. Further gains could then target the 1.0914 peak reached on June 5, which could shift the short-to medium-term outlook.
In brief, the pair still maintains a neutral-to-bullish mode, restrained between the 1.0876 and 1.0700 borders. Clear breaks of these boundaries could set the next direction.
