EURCHF had a bearish start on Tuesday, however, the price found support at the 20-period simple moving average (SMA) in the 4-hour chart.
Momentum signals are contradicting each other as the stochastic oscillator dropped from the overbought region, while the RSI is declining in the positive area. However, the Ichimoku lines are moving sideways.
Should the price extend declines, the 40-period SMA around 1.0980 could be of psychological significance ahead of the 1.0955 support level. If violation of the latter permits for further weakness, the next stop could be around 1.0915.
On the other hand, a recovery could retest the 1.1030 resistance. Moving higher, the 19-month high of 1.1096 barrier could attract attention, while a significant rally above this line could last until the 200-week SMA at 1.1145.
Turning to the medium-term picture, the bullish outlook remains intact, however, a fall below the 200-period SMA could shift this view to neutral. For a bull market though, traders need to wait for a clear close above 1.1100.
