EURCHF has stalled its uptrend recorded between October 2-12, stretching below the 1.15 key level and the 50-period exponential moving average. The short-term bias has turned bearish in the 4-hour chart according to technical indicators.
Both the RSI and the MACD give bearish signals as the former has dropped below its neutral zone, while the latter has slowed down, approaching zero and deviating below its signal line. Moreover, the Kijun-sen and the Tenkan-sen posted a bearish cross today, hinting that the pair might follow a downward path in the near-term.
Should the pair head down, support is likely to emerge at the 50% Fibonacci of 1.1475 of the uptrend from 1.1387 to 1.1561 (October 2-12). A drop below that level would see a re-test of the 61.8% Fibonacci of 1.1455 before the 78.6% of 1.1425 come into view.
On the flip side, the 23.6% Fibonacci at 1.1522 could also act as a barrier to upside movements. From here, the focus would shift towards the previous top at 1.1561. Any close above this point would confirm the continuation of the longer-term uptrend and therefore would restore the bullish status.
