EUR/CHF is trending lower on its daily time frame, but this long-term direction faces a test as the pair hovers around the former support around .9200-.9250.
Will we see a bounce or a break from here?
Take a look at these inflection points!
EUR/CHF 4-hour Forex Chart Faster with TradingView
EUR/CHF has been forming lower highs connected by a falling trend line that has been holding for roughly a year already, and its looks like another test of resistance is in the works.
Expectations of an ECB interest rate hike appear to be propping up the shared currency while the SNB’s jawboning is keeping the franc’s safe-haven’s gains in check.
Can the downtrend carry on from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The pair is testing the 50% Fibonacci retracement level that lines up with R1 (.9180) but still has room for a larger pullback to the 61.8% Fib closer to the trend line and 100 SMA dynamic resistance.
The 100 SMA is safely below the 200 SMA to indicate that bears have the upper hand, so a continuation of the selloff could drag EUR/CHF to the nearby support levels at S1 (.9030) then S2 (.8970) close to the swing low.
Just keep your eyes peeled for long green candlesticks closing above the area of interest, as a break above the long-term trend line could lead to a rally to the next upside targets at R2 (.9280) then R3 (.9340).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on EUR/CHF’s long-term downtrend. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
