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EUR/CHF traders eye 0.9408, after steep pullback

Action Forex says a sustained move below 0.9304 could extend the decline, while a firm break above 0.9408 would reopen the larger advance from 0.8979.

Reported · Written up by our desk · Major Pairs

Action Forex reports that EUR/CHF’s steep pullback last week points to a short-term topping around 0.9408, leading the outlook to turn neutral for now as consolidation is expected.

According to Action Forex, a drop below 0.9304 could trigger a deeper pullback, but downside is expected to be limited by a 38.2% retracement of the 0.8979 to 0.9408 move, near 0.9244, which should set up a rebound.

The outlet adds that a firm break of 0.9408 would resume the larger rise from 0.8979, while inability to sustain above 0.9394 weakens the bullish case.

On the bigger picture, Action Forex says sustained trading below 0.9264 would revive medium-term bearishness and set up a retest of the 0.8979 low, while a sustained break above 0.9394 would support the view that the move from 0.8979 is at least reversing the decline from 0.9928, with resistance next near 0.9660.

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