EURCHF attempted to break the 1.0778 support zone within this week, but its efforts proved unsuccessful as the line held the bears at bay.
Nevertheless, the negative market structure consists of lower lows and lower highs in the very short-term, while the oscillators are confirming this view. The RSI is moving lower in the negative territory, while the MACD is strengthening its bearish momentum below its trigger and zero lines.
Hence, the short-run risk is looking bearish at the moment and another retest of the 1.0778 support is likely. In particular, a decisive close below the latter level might be what the bears are eagerly waiting for testing the 200-period simple moving average (SMA) at 1.0770. Lower, the price may initially stall around the 1.0730-1.0747 region ahead of 1.0675.
To the upside, the 20-period SMA around 1.0807 may add some upside pressure to the market, but a violation of this point may not attract much attention unless the price jumps up to the 40-period SMA currently at 1.0822, near the Ichimoku cloud. Positive momentum could strengthen if the 1.0847 resistance is breached as well, with the 1.0870 resistance likely appearing next on the radar.
In brief, EURCHF could trade in a neutral-to-negative manner in the short-term. A closure below 1.0775 could bring fresh selling interest in the market, while a climb above 1.0870 could raise bullish pressure.
