- The bullish divergence of the relative strength index and stochastic and the bullish crossover on the moving average convergence divergence (MACD), as seen in the EUR/CHF daily chart, indicates the pair is gearing up for an upside break of the trendline connecting the July 16 low and Aug. 28 low.
- A close above the trendline would confirm a short-term bullish reversal and could yield a sustained move toward 50-day moving average (MA), currently located at 1.1423.
- The signs of a bullish reversal ahead of the Swiss National Bank (SNB) rate decision likely indicate that investors are expecting the central bank to strike a dovish tone. After all, the CHF has appreciated sharply in the last few weeks.
Daily Chart
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Spot Rate: 1.1295
Daily High: 1.1299
Daily Low: 1.1283
Trend: Cautiously bullish
R1: 1.1312 (trendline hurdle)
R2: 1.1343 (Sept. 11 high)
R3: 1.1423 (50-day MA)
Support
S1: 1.1267 (10-day MA)
S2: 1.1223 (Sept. 18 low)
S3: 1.1183 (Sept. 7 low)
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