Technical Analysis – EURCHF tests the upper Bollinger band; bullish in short-term
October 31, 2022 11:26 am
EURCHF appears to be maintaining a horizontal trajectory trapped between the 0.9865 support and the 0.9950 resistance, which is near with the upper Bollinger band. A paused state of directional momentum is reflected in the RSI indicator; however, the MACD oscillator is still strengthening its movement above its trigger and zero lines.
To the upside, bearish pressure over the last week has denied upside moves. If buyers manage to jump above the 0.9950 barrier, a revisit of the 200-day simple moving average (SMA) around 1.0045 could unfold. Overcoming these constrictions could see resistance develop at the 1.0085 barrier.
Otherwise, if sellers drive the pair below the mid-level of the Bollinger band, the 50-day SMA could interrupt the pair at 0.9715 ahead of the 0.9640 support, which lies near the lower Bollinger band. Should it fail to do so, the multi-year low of 0.9400 could attract traders’ attention.
Summarizing, initially the confines of 0.9865 or 0.9950 would need to be breached to revive directional momentum in the very short-term. Yet, the short-to-medium term picture remains bullish and a break either above the 200-day SMA may endorse this outlook.
EURCHF appears to be maintaining a horizontal trajectory trapped between the 0.9865 support and the 0.9950 resistance, which is near with the upper Bollinger band. A paused state of directional momentum is reflected in the RSI indicator; however, the MACD oscillator is still strengthening its movement above its trigger and zero lines.
To the upside, bearish pressure over the last week has denied upside moves. If buyers manage to jump above the 0.9950 barrier, a revisit of the 200-day simple moving average (SMA) around 1.0045 could unfold. Overcoming these constrictions could see resistance develop at the 1.0085 barrier.
Otherwise, if sellers drive the pair below the mid-level of the Bollinger band, the 50-day SMA could interrupt the pair at 0.9715 ahead of the 0.9640 support, which lies near the lower Bollinger band. Should it fail to do so, the multi-year low of 0.9400 could attract traders’ attention.
Summarizing, initially the confines of 0.9865 or 0.9950 would need to be breached to revive directional momentum in the very short-term. Yet, the short-to-medium term picture remains bullish and a break either above the 200-day SMA may endorse this outlook.
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