Hello traders! The EUR/CHF currency pair continues to prove the validity of an uptrend. Higher highs and higher lows are being printed and recently there was a rejection of the 50 Simple Moving Average on the 8-hour timeframe.
This was when the price has produced a 1.0759 low, which is now a key support level. Therefore, as long as daily closing prices remain above this support, EUR/CHF can be expected to rise further. The key resistance is located at 1.0884, which is the 127.2% Fibonacci retracement level applied to the corrective wave down where the support downtrend trendline was rejected.
Besides, the resistance uptrend trendline was broken, which provides a higher probability of further price increase in the short term perspective. Considering that the nearest resistance is only 100 pips away, such a move could take up to one trading week.
In regards to the downside risk, as has been mentioned, only a daily break and close below the 1.0759 can invalidate bullish forecast and reverse the trend to the downside.
Bias: Strongly bullish as long as daily close remains above 1.0759
Potential Support Zone: 1.0770 – 1.0790
Potential Targets: 1.0884
Have a profitable trading!