The 100 SMA Keeps the Trend Bearish for EUR/CHF
Skerdian Meta • 1 min read
EUR/CHF has been bearish for more than two years, as the sentiment in financial markets has been against risk currencies during this time. The price reached 1.05 by May this year, but by the middle of that month we saw a jump higher, which came partly due to the SNB intervening in markets and partly due to European leaders proposing the coronavirus recovery fund.
EUR/CHF jumped higher and continued like that for more than 4 cents, climbing above 1.09. But, buyers couldn’t reach the big round level at 1.10, which was a sign that the upside pressure was over and sellers were gaining control in this forex pair.
The pressure shifted to the downside and the highs were getting lower in this pair, as were the lows. This was a sign that the trend had changed. Moving averages turned into resistance as the price moved below them. Yesterday we saw a pullback higher on the H4 chart, but we decided to sell this retrace, which ended below the 100 SMA (green). Now the price has reversed and it is heading towards our take profit target. So, the bearish momentum continues here.