EUR/CHF: Bullish Momentum Faces Important ResistanceIn the last three sessions, EUR/CHF has risen nearly 1% , tilting the balance in favor of the euro as the Swiss franc weakens. Now, buying positions are preparing to face the most significant resistance that has acted as a barrier since August 2024.
Solid Lateral Range:
The movements in recent months have been indecisive, resulting in a consistent range between the ceiling at 0.94686 and the floor at 0.92997. The price has attempted to return to the upper part of the range in the short term, but recent indecisive candles cast doubt on whether there is sufficient strength to break through the barrier.
RSI:
The RSI line continues to show a highly positive slope and registers values above the neutral level of 50. However, recent readings indicate that the line is getting closer to the overbought level at 70, which could eventually signal a significant imbalance between buying and selling pressure, potentially leading to new bearish corrections.
MACD:
Both the MACD lines and the histogram remain above the neutral line at 0. However, the oscillations are not extreme enough to confirm a decisive bullish force. This may indicate a general sentiment of neutrality in the current resistance zone.
Key Levels:
0.94686: A nearby resistance level coinciding with the top of the lateral range. Oscillations above this level could reignite bullish pressure and potentially end the current lateral formation.
0.93809 : A nearby support level that coincides with the midpoint of the lateral range. It also aligns with the 100-period moving average and the 38.2% Fibonacci level. Oscillations below this level could erase the current bullish pressure and maintain the lateral range.
By Julian Pineda, CFA - Market Analyst
