Low bounced off a lower trend line
The EURCHF has been trending to the downside, but with the USDCHF run higher, we are getting a corresponding bounce in the EURCHF as well.
Looking at the hourly chart, a bounce off a lower trendline is also positive for the dip buyers looking for that bottom (see the numbered green circles in the chart above).
The last 4 so hours have seen a steady rise to new session highs.
That move has taken the price back up to test the 38.2% retracement and 100 hour moving average at 1.07113 area. Above that is another key area defined by the 200 hour moving average, the 50% retracement of the move down from last week's high and the swing low from January 17. That level comes in around the 1.0726 area.
If the buyers are to make a further play to the upside, getting above (and staying above) each of these levels would give more technical confidence. Stay below and the buyers play, may be neutralized and overpowered by the sellers keeping the downward trend going.
PS. Looking at the weekly chart below, the pair is scripting toward the lowest levels since the first quarter of 2017. Those lows came in at 1.0656 and 1.0631. The low today reached 1.0664 (within 8 pips of the higher target). When will the SNB become impatient with the CHF strength?
