EURCHF continues its downward trend, marking yet more lower lows as negative forces linger. Moreover, the pair is currently trading well below its 50- and 200-day simple moving average (SMA), reflecting an overall bearish outlook.
Short-term momentum indicators are supporting a negative bias as the RSI is located below its 50 neutral mark. Also, the MACD is found below zero and its red signal line, which might indicate that the negative momentum is gaining further traction.
Should the bears maintain control, the first line of support might be found at the 1.0325 barrier. A decisive move below this level could intensify selling pressures, sending the price to test its crucial May 2015 low at 1.0278. A break below the latter could shift bears’ attention towards the April 2015 low at 1.0230.
On the flip side, initial resistance might be found at the 50-day SMA currently at 1.0412 before buyers shift their attention towards the January high at 1.0511. Crossing above this point could open the door towards the region which includes the 1.0704 obstacle and the 200-day SMA currently at 1.0723. A break above the latter could turn the fortunes around for the pair, sending the price to test its May low at 1.0871.
In brief, the overall outlook for the pair is bearish. For sentiment to change, buyers would need to break above the 200-day SMA.
