EURCHF is making another attempt to close above the 50-day simple moving average (SMA) on Tuesday, sending the price to a four-week high of 1.6010.
The strengthening RSI and the improving MACD are endorsing the move up. However, A bearish trend is well intact on the daily chart and only a decisive rally above the swing high of 1.0652 would violate the short-term negative direction, while a clear peak above 1.0700 could further strengthen the case of a trend reversal, pushing resistance up to 1.0770, where the 50% Fibonacci of the downleg from 1.1031 to 1.0500 is also placed.
Meanwhile, medium-term traders may change their negative view to neutral if the price surpasses the 1.0830 mark, while longer-term traders would like to see a rally above the descending trendline which keeps upside movements under control over the past two years.
In the event the price returns below the 50-day SMA, the spotlight will initially turn to the 20-day SMA currently around 1.0550 and then back to the 1.0500 bottom. If sellers have enough power to breach the latter, the door would open for the 1.0400 round level, which if violated, could bring the 2015 low of 1.0230 under examination.
Summarizing, EURCHF is holding a positive short-term bias but overall it continues to follow a bearish trend. A break above 1.0700 could confirm the end of the negative short-term direction, while a rally above 10830 is required for the medium-term outlook to improve to neutral.
