EURCHF is still stretching the positive move after the sharp rally on Monday, surpassing the 1.0800 psychological level. Also, the pair climbed beyond the 200-period simple moving average (SMA), shifting the bearish bias to bullish. However, the RSI and the MACD seems to be overbought, suggesting a possible downside correction.
Immediate resistance could come from the 1.0815 barrier, identified on September 30 ahead of the 1.0830 powerful level. Surpassing these lines, the 1.0850 high and the 1.0876 spike, achieved on September 1, could attract traders’ attention.
A bearish retracement could find the next support at 1.0747 around the red Tenkan-sen line before meeting the 200-period SMA at 1.0738. Marginally underneath this line, the 1.0726 and the 20-period SMA at 1.0720 could switch the bias back to neutral one.
To sum up, EURCHF has been in a positive bias in the very short-term after the aggressive buying interest in the preceding sessions. A climb above 1.0876 could shift the long-term outlook to bullish as well.
