By: Mike Kulej
The EUR-CHF pair spent most of September pulling away from the all time low 1.2765 established earlier that month. This move turned out to be a good size rally, reaching 1.3465, forming a clear uptrend on the intermediate term time frame.
So far, this uptrend is nicely following a trendline drawn from the low of 1.2765. The price almost touched it on 09.24, at 1.3070, validating the trendline in the process. Since then, the EUR-CHF made a new high for the move before pulling back on Monday. Currently, another test of the trendline appears inevitable.
This pull back reached a 50% Fibonacci retracement level of the 1.3070 – 1.3464 up swing and could had lower still. It is taking place very close to the up trendline. For the bullish trend to remain intact, the trendline must provide solid support once again.
Failure to do so will put the EUR-CHF into at least a range- bound market, or consolidation. Perhaps even a trend reversal. We should have the answer soon, most likely over next 1-2 days.
