Technical Analysis – EURCHF creates fresh 2-year low; bears have the upper hand
Posted on July 24, 2019 at 12:59 pm GMT
Melina Deltas, XM Investment Research Desk
EURCHF has been creating an aggressive downward rally over the last four days, posting a fresh two-year low around 1.0970. Also, the price has broken the long-term sideways channel, indicating sharper negative structure.
The bearish move is confirmed by the technical indicators in the daily timeframe. The RSI is holding in the oversold territory and is pointing south, while the MACD is stretching its downside movement below trigger line.
Should weakness extend below the two-year low, support to further declines could be initially detected near the 1.0830 low, registered on June 2017. In case of sharper downfall, the price could retest the troughs from February 2017 near 1.0630.
In the alternative scenario, the pair should overcome the 1.1000 psychological mark to meet the 1.1055 former key support level. Clearing this zone and the short-term moving averages could rest around the 23.6% Fibonacci retracement level of the downleg from 1.1710 to 1.0970 at 1.1140.
All in all, EURCHF maintains bearish both in the short and the long-term timeframe.