EURCHF has been on a rollercoaster ride recently, hitting a 14-month high of 0.9928 before plummeting towards the 50-day SMA. Momentum indicators have turned bearish, signifying a possible shift in market sentiment. The pair has been attempting to recover from its massive downtrend that spanned from 2021 to 2023.
Support and Resistance Levels
After the recent surge to 0.9928, EURCHF retraced lower, finding support at the 50-day SMA. If the weakness persists, the pair could breach the SMA and test the support level at 0.9768. Further downside movement could see a halt at the May bottom of 0.9725, with additional support at 0.9675. On the other hand, if bulls take charge, immediate resistance awaits at 0.9836, followed by the April peak of 0.9847. A break above this level could pave the way for a retest of the 14-month high.
Market Outlook
EURCHF has experienced a strong pullback from its recent high, but the 50-day SMA is currently acting as a key support level. The pair is likely to see heightened volatility in the coming days, particularly with the upcoming ECB rate decision on Thursday. Traders should closely monitor price movements and key support/resistance levels to capitalize on potential trading opportunities.
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