Will EUR/CHF Exit Sideways Range Soon?
JFD Team | Apr 08, 2021 06:59AM ET
EUR/CHF traded lower on Thursday, after hitting resistance at 1.1041. That said, looking at the bigger picture, we see that the pair is still trading within the sideways range that’s been in play since Mar. 5, between 1.1005 and 1.1118. With that in mind, we will adopt a neutral stance for now.
At the time of writing, the pair looks to be headed towards the lower bound of the range, where a break would confirm a forthcoming lower low and may turn the short-term outlook to negative. The bears may then get encouraged to push the action towards the low of Mar. 1 at 1.0963, the break of which may see scope for extensions towards the inside swing high of Feb. 22, at 1.0916.
Shifting our attention to our short-term oscillators, we see that the RSI is near 30, pointing down. It could fall below that line soon. The MACD lies below both its zero and trigger lines, pointing south as well. Both indicators detect downside speed, which increases the chances for the pair to break the lower end of the aforementioned range soon.
The picture will turn positive only if we see EUR/CHF climbing above the upper end of the range, at 1.1118. This will confirm a forthcoming higher high and may initially pave the way towards the high of Mar. 4, at 1.1152. If the bulls are not willing to stop there, then a break higher may lead the rate towards the 1.1172 zone, defined as a resistance by the high of July 2, 2019.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.