EURCHF has continued its downward trend, marking yet more lower highs and lower lows as negative forces linger. Moreover, the pair is currently trading below its 50- and 200-day simple moving average, reflecting an overall bearish outlook.
Short-term momentum indicators are supporting a negative bias for the pair as the RSI is found below its 50 neutral mark. Also, the MACD is located below zero and its red signal line, which might indicate that the negative momentum is gaining further ground.
Should the bears remain in charge, initial support might be found at the 1.0325 hurdle. A decisive move below this point could intensify selling pressures, sending the price to test its May 2015 low at 1.0278. A break below the latter could shift the attention of the bears’ towards the April 2015 low at 1.0230.
On the flip side, should buyers resurface, initial resistance might be found at the 50-day SMA currently at 1.0425 before eyeing the 1.0511 barrier. Crossing above the latter could open the door towards the July low of 1.0600. A break above this point could increase buying activity, sending the price to test the 1.0704 hurdle before the bulls shift their attention towards the 200-day SMA currently at 1.0733.
In brief, the overall outlook for the pair is bearish. For sentiment to change, buyers would need to break above the 200-day SMA, which is currently around 1.0733.
