Technical Bias: Bullish
Key Takeaways
“¢ Euro remains elevated against the Swiss franc despite negative sentiment.
“¢ A bullish trend line continues to hold the downside in the pair.
“¢ EURCHF support at 1.2200, and resistance at 1.2225.
The Euro is trading lower against the US dollar, but has managed to hold the ground against the Swiss franc, as buyers continue to take the pair higher.
Technical Analysis
There is a monster trend line on the hourly timeframe for the EURCHF pair. Every time the pair falls closer to the mentioned trend line it has managed to find buyers. As long as this trend line holds, the pair might continue to remain in an uptrend. The trend line support currently lies at around 1.2200 level. This level also coincides with the 100 hourly simple moving average, which might also act as a support. However, before the 100 hourly SMA, the 50 hourly SMA might come into play at 1.2210. If the pair breaks the trend line and support level, then it might fall closer to the 200 hourly SMA. If the buyers give up, then a move back towards the last low at 1.2189 is possible.
Alternatively, if the pair succeeds in gaining bids and trades higher, then a small bearish trend line might come into play around the last high at 1.2225. This level also represents the 1.236 extension of the last leg lower from the 1.2216 high to 1.2189 low. So, this level might act as a resistance for the pair. Any further strength might take the pair towards the 1.2250 level where sellers are expected to return.
Overall, if the pair trades closer to the highlighted support area, then the chance of a bounce back is very likely. There is no major economic release scheduled in the Euro zone today, so the market is mostly expected to trade in range moving ahead.
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