EURCHF has eased in the previous two days after it hit a three-year high of 1.1830 earlier this week. Prices broke above the 1.1800 psychological level on January 12 and are trading above their moving averages in the daily chart. It is worth mentioning that the pair has been developing within an upward sloping channel since August 2017.
Short-term momentum indicators are holding in the positive area. The RSI indicator is flattening above the 50 level, whilst the MACD oscillator stands above its trigger line with weak momentum, indicating further consolidation.
Should prices reverse lower, immediate support should come at 1.1680, which is slightly below the 23.6% Fibonacci retracement level at 1.1690 of the last upward movement with the low at 1.1255 and the high at 1.1830. A drop below this area would take the pair closer to the 38.2% Fibonacci mark of 1.1610.
To the upside, there is a resistance level at 1.1980 if the price breaks above this week’s high of 1.1830 and extends its gains beyond the upward sloping channel.