20200719- EUR/CHF – at crossroads
After reaching 1.0606 on the downside a bullish engulfing occured in the EURCHF an the Euro rose through resistances at 1.065, 1.07 and 1.075 up to almost 1.08. From there it corrected downward again. Keeping the primary downtrend intact.
Whilst the RSI is not oversold yet, the CCI is indicating an oversold situation. It will be very interesting to see what is happening now. On the upside the 1.08 level is a key resistance and also important for the prevailing primary downtrend.
On the downside a break of the 1.07 level could trigger a sharper fall in the Euro.
Economic data and rising COVID19 cases should affect the short to medium term movements. Nevertheless there is still a threat of rising insolvencies, currently postponed through state aid, in the longer run.
This is no investment advice. The author currently holds a position in the EURCHF.
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