EURCHF has been trending downwards since March, falling to find significant support throughout this whole period. This downside move is likely to resume as both its 50- and 200-day simple moving averages (SMAs) are currently dipping downwards, indicating a negative momentum.
The short-term oscillators further reinforce the pair’s negative near-term bias. The RSI is flatlining in the oversold area, while the MACD histogram has crossed below its red signal line in the negative territory.
Should the selling pressure intensify further, the bears might target the recent low of 1.0388. Breaching this level, the price could move towards the June 2015 low of 1.0312. If the price pierces through this region, then it might seek to halt its decline at the April 2015 resistance point of 1.0278.
Alternatively, if the bulls retake control and push the price higher, initial resistance could be encountered at the 1.0446 level. Conquering this obstacle, buyers may then aim at 1.0541 or even higher at the 1.0600 psychological mark. Higher up, 1.0691 might prove a strong resistance barrier for the price.
Overall, EURCHF sustains a long-term bearish structure. A clear break above 1.0940 could turn its short-term picture back to positive, whereas a dive below 1.0388 would drive the price towards multi-year lows.
