EURCHF paused again around the bottom of the four-month-old descending channel following the slump below the long-term supportive trendline and the dip towards a five-month low of 1.0789.
The ongoing consolidation could precede another upside reversal and the positive charge in the RSI and the Stochastics, which are deviating above their oversold levels, is endorsing that bullish scenario.
The bearish part of the story, however, is that the plunge below the trendline and the progressing negative cross between the 20- and 200-day simple moving averages (SMAs) foresee further deterioration in the short-term downward pattern.
A clear close below 1.0816 could raise negative risks in the market, likely bringing the 1.0785 support area next into view. Another extension lower may head for the 1.0733 region, which has been a major base to upside movements. Breaching that floor, the price may slide to meet the October low of 1.0651.
Should the bulls take control, traders will be looking for a break above the 1.0888 – 1.0915 zone before they target the channel’s upper line seen at 1.0947. Beyond that, the pair may push towards the 1.0980 – 1.1000 with scope to reverse the downtrend.
Summarizing, EURCHF is setting the stage for an upside correction, though the strengthening bearish trend signals reduce the case for a major improvement.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
EURCHF aims for a rebound as bearish trend jitters strengthen
ByXM Group
AuthorTrading Point
Published 07/21/2021, 05:49 AM
Updated 05/01/2024, 03:15 AM
EURCHF aims for a rebound as bearish trend jitters strengthen
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.