Thursday, August 22, 2019
Home > Posts > Technical Analysis – EUR/CHF outlook remains negative

Technical Analysis – EUR/CHF outlook remains negative

EUR/CHF 21/11/2018 | EconAlerts

EUR/CHF turns bearish again in the short-term; outlook remains negative.

EUR/CHF has slipped back below its 50-day moving average (MA), touching a two-month low of 1.1303 earlier today. The near-term bias is looking bearish again with the MACD histogram returning to negative territory and falling below its signal line, while the stochastics are declining sharply.

Further declines would likely drive the pair towards the nearest support around 1.1265 – a previous congestion zone. Failure to hold above this support would risk a breach of September’s 13-month low of 1.1182. If broken, this would bring into focus the psychological 1.11 handle.

To the upside, immediate resistance could be met at the 23.6% Fibonacci retracement of the down-leg from 1.2004 to 1.1182, at 1.1376. This is also where the 50-day MA is converging, suggesting the area could prove a difficult barrier to overcome. Higher up, further resistance could come from the descending trend line, which has been capping advances since July.

A break above the descending trendline would shift the short-term bearish picture to a more positive one and place EUR/CHF in a stronger position to re-challenge 38.2% Fibonacci at just below the 1.15 level. The 38.2% Fibonacci halted the pair’s rebound back in October. A successful attempt to cross above it could mark the start of a more bullish picture in the medium term.
EUR/CHF 21/11/2018 | EconAlerts



 

TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital

 


Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

Leave a Reply

Your email address will not be published. Required fields are marked *