EURCHF looks to be creating a floor around a fresh 33-month low of 1.0662 as the RSI and the MACD seem to have reached a bottom in bearish territory and are now changing direction to the upside.
Traders, however, would be more eager to engage in buying activities if the price manages to surpass the nearby resistance at 1.0757, where the 23.6% Fibonacci of the 1.1058-1.0662 downleg is placed. If this is successfully breached, then the rally may next rest somewhere between 1.0830, which stands near the 50-day simple moving average (SMA), and the 50% Fibonacci of 1.0860, while a closure above 1.0900 may be needed to push the price towards the tentative resistance trendline drawn from the 2018 peak of 1.2004.
On the flip side, the selling pressure could accelerate again if the market deteriorates below the 1.0625 former strong support area. Such a move could bring the 1.0521 key barrier under the spotlight, which if violated could trigger sharper losses probably towards the 2015 trough of 1.0232.
In the medium-term timeframe, the pair is in a bearish trend since October and only a rally above 1.0830 would put the market in a sideways path.
Summarizing, EURCHF is expected to show improvement if the price overcomes the 1.0757 resistance zone. In the medium-term, a stronger push up above 1.0830 is required to upgrade the negative outlook.
