- EURCHF spikes lower following rejection at 23.6% Fibo
- Price trades sideways after break below 50-day SMA
- Momentum indicators are neutral-to-negative
EURCHF has been staging a solid recovery since mid-June, advancing to its highest level in more than a month last Monday. However, the pair experienced a strong pullback following its rejection around 0.9796, which is the 23.6% Fibonacci retracement of the 0.9252-0.9928 upleg.
Should the negative bias persist, the bears could attempt to send the price below the 38.2% Fibo of 0.9670. Lower, the pair’s retreat could pause at the 50.0% Fibo of 0.9590, which lies very close to the 200-day SMA. In case of a downside violation, additional support could be found at the 61.8% Fibo of 0.9510.
On the flipside, if the price erases this latest slump, the 23.6% Fibo of 0.9796 could prove to be a tough barrier for the bulls to overcome. Further upside attempts could meet resistance at the 0.9836-0.9847 range, defined by the May resistance zone and the April peak. Surpassing that hurdle, the pair could revisit its 2024 peak of 0.9928.
Overall, EURCHF has been trading sideways in the past few sessions following an aggressive spike to the downside, which sent the pair below its 50-day SMA. For the bulls to regain confidence for a continuation of the latest uptrend, the pair needs to reclaim its short-term SMA.
