Technical Analysis – EURCHF gets rejected at 50-day SMA
EURCHF was rebounding strongly from 4-month low
But its advance came to a halt at the 50-day SMA
Oscillators are cautiouslytilted to the bullish side
EURCHF has been in a steep recovery since mid-June, attempting to erase the aggresive slide from its 2024 peak. However, the rebound seems to have been on hold in the past couple of sessions after the 50-day simple moving average (SMA) prevented further advances.
Should that rejection trigger a pullback, initial support could be found at 0.9670, which is the 38.2% Fibonacci retracement of the 0.9252-0.9928 upleg. Lower, the pair’s retreat could pause at the 50.0% Fibo of 0.9590, which overlaps with the 200-day SMA. Should that barricade also fail, additional support could be found at the 61.8% Fibo of 0.9510.
On the flipside, if the price manages to claim the 50-day SMA, the recent rejection region of 0.9764 could prove to be a tough barricade for the bulls. Further upside attempts could meet resistance at the 23.6% Fibo of 0.9796. In case of an upside violation, attention could shift to the 0.9836-0.9847 range defined by the May resistance zone and the April peak.
Overall, EURCHF’s recovery seems to be jeopardized after its rejection at the 50-day SMA. However, the momentum indicators remain tilted to the upside, suggesting that the bulls have not yet surrendered.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
