Technical Analysis – EURCHF on the retreat as rebound falters
June 6, 2023 2:31 pm
EURCHF had been in a steady downtrend since its latest rebound got rejected just shy of the parity level in late March. Even though the pair attempted a recovery after bouncing off the seven-month low of 0.9670, its advance got rejected at 0.9761, which has held its ground multiple times in the past few months.
The momentum indicators currently suggest that bearish forces are holding the upper hand. Specifically, the RSI is flatlining below its 50-neutral mark, while the stochastic oscillator is descending after posting a bearish cross.
If the price extends its retreat, the seven-month low of 0.9670 could act as the first line of defence. Should that barricade fail, the spotlight could turn to 0.9642 before the August low of 0.9551 comes under examination. A violation of the latter may open the door for the September 2022 support of 0.9530.
Alternatively, should the decline falter and the price reverse upwards, the bulls could attack the crucial 0.9703 zone. Surpassing that region, the price could challenge the 0.9762 resistance, which has repeatedly repelled any upside attempts. Even higher, the pair could ascend towards 0.9848 or higher to test the April resistance of 0.9879.
Overall, EURCHF seems ready to extend its structure of lower lows after the completion of a death cross between the 50-day simple moving average (SMA) and the 200-day SMA. Nevertheless, a jump above 0.9761 could trigger some buying interest.
EURCHF had been in a steady downtrend since its latest rebound got rejected just shy of the parity level in late March. Even though the pair attempted a recovery after bouncing off the seven-month low of 0.9670, its advance got rejected at 0.9761, which has held its ground multiple times in the past few months.
The momentum indicators currently suggest that bearish forces are holding the upper hand. Specifically, the RSI is flatlining below its 50-neutral mark, while the stochastic oscillator is descending after posting a bearish cross.
If the price extends its retreat, the seven-month low of 0.9670 could act as the first line of defence. Should that barricade fail, the spotlight could turn to 0.9642 before the August low of 0.9551 comes under examination. A violation of the latter may open the door for the September 2022 support of 0.9530.
Alternatively, should the decline falter and the price reverse upwards, the bulls could attack the crucial 0.9703 zone. Surpassing that region, the price could challenge the 0.9762 resistance, which has repeatedly repelled any upside attempts. Even higher, the pair could ascend towards 0.9848 or higher to test the April resistance of 0.9879.
Overall, EURCHF seems ready to extend its structure of lower lows after the completion of a death cross between the 50-day simple moving average (SMA) and the 200-day SMA. Nevertheless, a jump above 0.9761 could trigger some buying interest.
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