EURCHF has been in a descending trend since April 2019 and is currently hovering near the five-year low of 1.0517. In the short-term, the price is lacking direction as it remains within the 1.0650 – 1.0517 channel over the last month and is capped by the simple moving averages (SMAs).
According to the technical indicators, the RSI is pointing slightly up in the negative territory, however, the MACD oscillator completed a bearish crossover with its trigger line in the bearish zone, suggesting a downward movement rather an upside correction move.
Immediate support is being provided by the five-year trough of 1.0517, achieved on March 19. However, should prices dip lower again, the next support would likely come from April 2015 at the 1.0235 barrier, ahead of a critical region at 1.0060, registered on August 2011.
In case of an upward attempt, EURCHF would likely meet resistance at the 20- and 40-day SMAs currently around 1.0568 and 1.0588 respectively. A break above these lines would ease the downside pressure, while a climb above the Ichimoku cloud would help turn the price to 1.0650. A penetration of the narrow range would open the door for 1.0710, which stands near the 200-day SMA and the falling trend line. Marginally above this level, the price would flirt with the 23.6% Fibonacci of 1.0744.
In the long-term timeframe, if there is a successful climb above the downtrend line, the market would shift the outlook to slightly neutral to bullish. On the other hand, a slip below 1.0517 would extend the downside structure
