EUR/CHF Reaches the Overbought Region, Sellers Are Likely to Emerge

EUR/CHF Reaches the Overbought Region, Sellers Are Likely to Emerge

Key Resistance Levels: 1.0800, 1.0900, 1.1000
Key Support Levels: 1.0600, 1.0500, 1.0400

EUR/CHF Price Long-term Trend: Bullish
The pair has risen to level 1.0820 and it is facing resistance at the recent high. The recent high has not been broken since September. The selling pressure is likely to continue. Presently, the price has dropped from level 1.0820 to 1.0801.

EUR/CHF – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 62 of the Relative Strength Index period 14. It implies that the market is in an uptrend zone and above the centerline 50. The 50-day SMA and 21-day SMA are sloping horizontally. It indicates the sideways trend.

EUR/CHF Medium-term Trend: Bullish
On the 4-hour chart, the pair is also in an upward move but presently in a sideways trend. A retraced candle body tested 78.6% Fibonacci retracement level. This indicates that the current uptrend will rise and reverse at level 1.272 Fibonacci extensions. The upward move is possible if the resistance at 1.0820 is breached.

EUR/CHF – 3 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward indicating the uptrend. The pair is below the 80% range of the daily stochastic. It indicates that the market is in the overbought region. Later sellers may emerge. The current trend has been impeded at the recent high.

General Outlook for EUR/CHF
EUR/CHF is in an uptrend but has been resisted at level 1.0820. The upward move is unlikely as the overhead resistance has not been broken since September.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.