- EUR/CHF’s recovery rally stalls near a 24-month falling trendline.
- A breakout could power stronger gains toward 1.10.
EUR/CHF’s ascent from lows near 1.05 observed in May looks to have stalled at the resistance of the trendline falling from May 2018 and April 2019 highs.
The pair failed to close last week above the trendline hurdle. The bulls made another attempt to scale the long-term hurdle on Monday but failed.
At press time, the pair is trading largely unchanged on the day near 1.0816 and the trendline hurdle is located at 1.0872. A weekly close above that level would confirm an end of the two-year-long downtrend and could invite stronger chart-driven buying, leading to the 100-week simple moving average (SMA) at 1.1063.
The probability of the pair charting the bullish breakout this week would weaken if the support at 1.0744 is breached. That would invalidate the higher lows pattern on the 4-hour chart and will likely yield a deeper pullback.
Weekly chart
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Trend: Neutral
Technical levels
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