EURCHF is currently trading below its 200-period simple moving average (SMA), which together with the pair’s successive lower lows reflect an overall bearish outlook. However, the near-term sentiment appears to be cautiously positive as the price has recently crossed above its 50-period SMA, breaking a series of successive lower highs.
Short-term momentum indicators are supporting a positive bias for the pair as the RSI is found above its 50 neutral mark, while the MACD is located above zero and its red signal line.
Should the price cross below its 50-period SMA currently at 1.0427, selling pressures could intensify opening the door towards the 1.0411 support. A further descending move beyond this point could send the price to test the 1.0389 obstacle before the bears shift their attention towards the 1.0366 barrier.
On the flip side, if the bulls resurface, initial resistance might be found at the 1.0448 level. Surpassing this obstacle could pave the way towards the 1.0493 level. A decisive move above this point could strengthen the pair’s positive momentum, sending the price to test the 1.0512 barrier, before the buyers eye the 1.0526 resistance.
In brief, despite the fact that the immediate-term outlook for the pair appears to be cautiously positive, the overall outlook is bearish. For sentiment to change, buyers would need to break above the 200-period SMA.
