The 50 SMA Is Turning Into Support for EUR/CHF

EUR/CHF has retraced lower, but the 50 SMA is holding as support

Let's see if the bullish trend will resume again from here

EUR/CHF has been bearish for a long time. But it bounced higher from 1.05 in the middle of May, as the idea of a EU coronavirus fund was thrown out, while the SNB (Swiss National Bank) intervened in the markets by buying EUR/CHF as they usually do.

This pair bounced to 1.0915, but it returned back down to 1.06 by the beginning of June. Many traders thought that the larger downtrend had resumed again, but the pullback ended at the 100 SMA on the daily chart at 1.06, which means a higher low than the previous one at 1.05.

This also meant that the larger trend might be changing, or at least, a decent pullback would take place, probably above 1.10. EUR/CHF bounced to 1.08 from there, but it has been retracing lower for about a week now. Although, the pullback seems weak and the 50 SMA (yellow) is holding as support on the chart above. We are long on this pair, so we hope that the pullback ends here at the 50 SMA and EUR/CHF bounces higher now.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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