Loading...
by Charalambos Pissouros

EUR/CHF Rebounds, but Still Below the Lower End of a Range

EUR/CHF has been in a recovery mode since Thursday, when it hit support near 1.1057. The day before, the rate tumbled and broke below 1.1137, the lower end of a range that contained the price action since May 22nd, while the aftermath recovery, at least up until now, remains limited below that boundary. Thus, as long as EUR/CHF is trading below 1.1137, we will hold a bearish stance.

If the bears are strong enough to take charge from current levels, then we may see them driving the battle back down for another test near 1.1057. Another break, below 1.1057, could encourage more sellers to jump into the action and perhaps set the stage for our next support area, at around 1.0985, defined by the lows of July 13th and 19th, 2017.

Looking at our short-term momentum indicators, we see that the RSI turned down from slightly below 50, while the MACD, although above its trigger line, lies within its negative territory and shows signs that it could start turning south as well. These indicators suggest that the current recovery may be in its last stages and that the bears may be ready to take the reins again soon.

On the upside, a decent move back above 1.1175 could confirm the rate’s return back within the aforementioned sideways range, and thereby turn the near-term outlook back to flat. The recovery could continue with the range, with the rate initially testing the 1.1213 area, the break of which may allow extensions towards the upper bound of the range, at around 1.1265.

EUR/CHF 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

70% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT