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EURCHF’s Upward Attempt May be Short-Lived

EURCHF is challenging the 20-period simple moving average (SMA) once again, providing some positive signals. The RSI is trying to overcome the neutral threshold of 50; however, the stochastic is heading north following the bearish crossover within the %K and %D lines in the short-term.

If the bulls continue to buy the pair, the 40-period SMA, which coincides with the 1.0908 barrier ahead of the 23.6% Fibonacci retracement level of the falling wave from 1.1075 to 1.0870 at 1.0919, might provide immediate resistance. The 1.0925 level is just over this barrier, well ahead of the 38.2% Fibonacci of 1.0948 and the 200-period SMA, which is currently at 1.0954.

A decline below the 20-period SMA might lead to a four-month low of 1.0870 before dropping to the inner swing high of 1.0845 from February 2 and the low of 1.0787 from February 10.

To summarize, EURCHF’s longer-term structure remains negative, and only a close above the 200-period SMA would change this outlook to bullish.

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