EURCHF portrays an improving picture despite its latest retreat from the 1.0859 resistance mark. The rising simple moving averages (SMAs) retain a bullish tone while the merged Ichimoku lines are flattening in-line with the Ichimoku cloud, supporting dampened price action currently between 1.0794 and 1.0859.
The short-term oscillators reflect waning positive momentum. The MACD, in the positive zone, is easing above its red trigger line, while the RSI is diving in bullish territory. Furthermore, the stochastic oscillator is reflecting negative divergence in the pair, endorsing extra deterioration in the price as the %K line extends further downwards.
In a negative scenario, the price may face immediate support from the joined and flattening Ichimoku lines, which are in-line with the mostly horizontal cloud around 1.0830. Pushing underneath the cloud, the band of 1.0816-1.0819 – containing the 50-period SMA as well – may provide downside limitations, before the retracement tests the 100-period SMA at 1.0806 and the adjacent level of 1.0802. Persistent selling may then be challenged by the critical section of lows of 1.0780-1.0794 and the neighbouring 1.0771 barrier. Should these obstacles fail to defend the positive structure, the price may then seek the crucial 200-period SMA at 1.0755 and the strong barrier of 1.0748 beneath.
If buyers re-emerge and drive the price up, resistance may commence from the 1.0859 fortified border. However, surpassing this may see the price battle the resistance region of 1.0870-1.0876, formed by the fresh near 3-month high and the peak achieved on September 1. Navigating a climb above this too, may see the price then meet the 1.0889 high before aiming for the 1.0914 top, identified back in June 2020.
Summarizing, in the short-term timeframe it appears EURCHF’s neutral-to-bullish demeanour may continue to pilot between the 1.0780 and 1.0876 boundaries, before a clear direction takes shape.