- EURCHFÂ was rebounding strongly from 4-month low
- But its advance came to a halt at the 50-day SMA
- Oscillators are cautiouslytilted to the bullish side
EURCHF has been in a steep recovery since mid-June, attempting to erase the aggresive slide from its 2024 peak. However, the rebound seems to have been on hold in the past couple of sessions after the 50-day simple moving average (SMA) prevented further advances.
Should that rejection trigger a pullback, initial support could be found at 0.9670, which is the 38.2% Fibonacci retracement of the 0.9252-0.9928 upleg. Lower, the pair’s retreat could pause at the 50.0% Fibo of 0.9590, which overlaps with the 200-day SMA. Should that barricade also fail, additional support could be found at the 61.8% Fibo of 0.9510.
On the flipside, if the price manages to claim the 50-day SMA, the recent rejection region of 0.9764 could prove to be a tough barricade for the bulls. Further upside attempts could meet resistance at the 23.6% Fibo of 0.9796. In case of an upside violation, attention could shift to the 0.9836-0.9847 range defined by the May resistance zone and the April peak.
Overall, EURCHF’s recovery seems to be jeopardized after its rejection at the 50-day SMA. However, the momentum indicators remain tilted to the upside, suggesting that the bulls have not yet surrendered.
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