EUR/CHF Reaches the Overbought Region, May Resume Downward

Azeez Mustapha
2 November 2020 | Updated: 2 November 2020

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. Today, the pair is rising and approaching level 1.0700. The upward move is likely to face resistance at the recent high.

EUR/CHF – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 40 of the Relative Strength Index period 14. It implies that the market is in a downtrend and below 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. The price has reached the overbought region. On November 2 uptrend; a retraced candle body tested 50% Fibonacci retracement level. This means that the pair will rise and reverse at level 2.0 Fibonacci extension because the market has reached the overbought region.

EUR/CHF – Daily Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping sideways indicating the previous trend. The pair is above the 80% range of the daily stochastic. It indicates that the market is in the overbought region of the market.

General Outlook for EUR/CHF
EUR/CHF has risen to an overbought region of the market. According to the Fibonacci tool, the market will rise and reach level 2.0 Fibonacci extension. The pair is likely to reverse because the market has reached the overbought region.



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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.