By: Mike Kulej
At the beginning of September, the EUR-CHF made an all time low of one 1.2765. Since then, it had been in a steady, if slow at times, uptrend, reaching as high as 1.3532 on Thursday.
This rally was stalled for a couple of weeks at the 100 SMA, which often provides a strong resistance/support. In most cases, such action indicates trend continuation. Because the record setting sell off before was so steep, the price history does not offer another resistance until 1.3925, the high from early August.
That level will have to be broken in order to confirm a long term trend reversal. For now, the new up trendline could be used as a guide of the progress. As long as the EUR-CHF stays above it, the current rally is valid, with the 1.3925 providing the objective. Failure to remain above the trendline would jeopardize the developing uptrend.
Other technical indicators are in concurrence with the rally. The MACD is in a positive territory, having crossed the zero line few weeks ago, and nowhere near oversold levels. The Momentum indicator also supports the uptrend. It dropped during the short market congestion, but is once again turning up. Looks like the EUR-CHF should keep moving north.
