EURCHF Could Have Just Broken A Major Trendline

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The EURCHF currency pair broke above the descending trendline starting Mar 26 recently, marking a 3-month high.

With a number of retests having turned the trendline into a support, more upside can be expected.

The RSI (9) divergence supports this narrative. It also indicates more bullish flows are underway as the indicator has more room until it turns overbought.

Even when it does, more upside could be expected with prices reaching the upper channel.

A short-term ascending channel connecting the market low of 1.05 and the recent 1.0576 low suggests that prices could move higher indeed.


The trendlines TR1 and TR2 mark the short-term targets for the pair. On the contrary, in case a pullback takes place, TS1 and TS2 are two levels to watch on the downside. TS2, however, could be missed as the lower channel poses strong support.

With the RSI (9) supporting more upside in the short-term too, prices could retest TS1 and move higher.

In the case of TS2 breaking, we can expect the pair to decline towards 1.054.



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