EUR/CHF has been on an upmove since its reversal higher on the 9th of September. The pair is still above an upside support line drawn from the low of that day. At the same time, EUR/CHF is trading above the very short-term upwards-moving trendline taken from the low of the 26th of October. Even if the short-term trendline gets broken, still, the near-term outlook would remain somewhat positive for this pair.
For us to get more comfortable with the upside, we would need to see a break above the 1.1465 hurdle, marked by yesterday’s high and the intraday swing low of the 22nd of October. This is where more bulls may jump in and take EUR/CHF towards the next potential area of resistance, at the psychological 1.1500 level. If that level fails to withstand to the buying pressure, the pair could easily continue traveling north to test the 1.1528 obstacle, which was an intraday low of the 9th of August and also the high of the 6th of August.
Even if EUR/CHF starts retracing back down heavily and breaks the aforementioned short-term upwards-moving trendline, we would still remain somewhat positive, as the previously-mentioned upside support line could limit the fall and bring the bulls back to the table.
On the other hand, a break of the above-mentioned upside line and a drop below the 1.1345 support area, marked by the low of the 26th of October, could be taken as a sign of bull-weakness, which could lead EUR/CHF towards the next potential support zone at 1.1310 that held the rate from falling lower on the 2nd of October. If the selling momentum remains strong, the pair could travel towards the next potential support, near the 1.1280 barrier, marked by the low of the 28th of September.
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