EUR/CHF Reaches Bearish Exhaustion, May Resume Uptrend at Level 1.0689

EUR/CHF Reaches Bearish Exhaustion, May Resume Uptrend at Level 1.0689

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

EUR/CHF Price Long-term Trend: Ranging
EUR/CHF has been on a downward move since September 25. The current downtrend resumes after the retest at level 1.07488. The market is still falling. On October 15 downtrend; the last retraced candle tested the 78.6% Fibonacci retracement. It indicates that the pair will reach level 1.272 Fibonacci extensions and reverse.

EUR/CHF – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 36 of the Relative Strength Index period 14. It implies that the market is in a downtrend and below the centerline 50. The pair is approaching the oversold region. The 50-day SMA and 21-day SMA are sloping horizontally. It indicates the sideways trend.

EUR/CHF Medium-term Trend: Bearish
On the 4-hour chart, the pair is also in a downward move. On October 28 downtrend; a retraced candle body tested 78.6% Fibonacci retracement level. This indicates that the pair will fall and reach level 1.272 Fibonacci extensions or 1.0688. The market is expected to reverse at that price level.

EUR/CHF – 1 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping sideways indicating the previous trend. The pair is below the 30% range of the daily stochastic. It indicates that the market is in a bearish momentum.

General Outlook for EUR/CHF
EUR/CHF is in a downward move. The market has reached the oversold region. Buyers are expected to emerge. According to the Fibonacci tool, the market is expected to reverse at the 1.272 Fibonacci extensions or level 1.0689.


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Author : Azeez Mustapha

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