EURCHF is tumbling to a fresh three-and-a-half-month low of 1.0910 today, supporting the negative outlook in the near term. The RSI is flirting with the 30 level, while the stochastic is entering the oversold territory. The 20- and 40-period simple moving averages (SMAs) completed a bearish crossover, confirming the recent dive.
In case of steeper declines the door could open for the 1.0890 support, registered in December 2020, while if the bears continue to sell the pair, the 1.0867 barrier, taken from the inside swing high on January 7, may halt the negative move.
On the other side, in case of an increase above the 1.0921 resistance, the 20- and 40-period SMAs could act as significant resistances near 1.0942 and 1.0957, respectively. Above that, the 200-period SMA at 1.0976 and the 1.0980 barriers could come into the spotlight. Slightly higher, the 1.1000 psychological level could be a turning point.
To sum up, EURCHF has been in a descending move in the short-term, breaking the medium-term trading range to the downside.
In the long-term, the market has been in a bearish mode since March 4.
