Daily Forex Analysis – EUR/CHF
The EUR/CHF pair’s momentum has somewhat diminished, as indicated by the 4-hour Moving Average Convergence Divergence (MACD), yet the prospects of an upward movement persist above the pivotal support level at 0.9568. The pair’s recent bounce from 0.9420 is expected to challenge the resistance at 0.9695 initially. A convincing surge through this threshold would suggest that the recent downward trend from 1.0099 might have found its trough at 0.9420, narrowly evading the 2022 low support level at 0.9411. Overcoming this resistance could potentially ignite a rally towards the 0.9844 mark.
Expanding the scope to a broader timeline, the market dynamics between the 1.0099 resistance and the 2022 low support at 0.9411 seem to be carving out a three-wave consolidation structure. The current ascension from 0.9420 is possibly the final segment of this configuration. Within this context, the dominant downward trend from the 2018 zenith of 1.2008 may still have the potential to reassert itself beyond the 0.9411 marker. Conversely, a definitive breach above the 1.0099 resistance would signal a potential reversal in the long-term bearish trend.
Analysis Summary
In conclusion, the EUR/CHF currency pair shows signs of a slow momentum but remains supported for a rise as long as the 0.9568 level stands firm. A break past 0.9695 could invalidate the recent declines, potentially leading to a rally toward 0.9844, while the larger bearish context hangs in the balance against the crucial 1.0099 resistance.
Key Points
- EUR/CHF’s momentum wanes but is supported above 0.9568.
- A breakthrough of 0.9695 could negate the recent downward trend.
- Long-term trends hinge on the 1.0099 resistance level.
