- EURCHF trades a tad above its all-time low of 0.9235
- Euro bulls are trying to regain market control and limit their losses
- Momentum indicators could open the door for a rebound
EURCHF is edging higher today but trades very close to its all-time low of 0.9235 recorded on December 29, 2023 with the recent series of lower lows and lower highs remaining intact. Euro bulls are trying to recover part of their significant 6% losses recorded during 2023, but they appear unable to regain market control and push EURCHF towards the 0.9403 area.
The momentum indicators could hold the key to a possible upleg. In more detail, the Average Directional Movement Index (ADX) is edging higher, but the downwards move of the D- indicator could mean that the current sell-off has run its course. Additionally, the RSI remains below its 50-midpoint and thus confirming the current bearish pressure. Interestingly, the stochastic oscillator is still hovering at its oversold (OS) territory, battling with its moving average. Should it manage to break above its OS, it would be seen as a strong bullish signal.
If the bulls become more confident, they could try to lead EURCHF higher towards the September 26, 2002 low at 0.9403. It might not be a one-way street move higher, but if successful, the bulls could then have a go at gradually testing the resistance set by the June 9, 2022 downward sloping trendline and the 50-day simple average (SMA) at 0.9516.
On the flip side, the bears are probably enjoying their hard-earned gains and could possibly be taking a breather at this stage. They could try to push EURCHF lower towards its recent low at 0.9235 and then be given the chance to record a new all-time low, with 0.9200 looking like the next plausible target.
To sum up, the bearish trend remains in place, but the bulls could have the chance to stage a rebound if the momentum indicators turn in their favour soon.
