Ransquawk

The exchange rate of the EURCHF currency pair moved in a downward trend, whose bottom was set around the level of 1.1184. However, in the first week of the current month, the buyer succeeded in overcoming the downward trend line, and the price for good arrived above the channel of averages EMA 10/20.

At the closing of yesterday’s session, there was another breakthrough as can be seen in the daily chart below, the price broke resistance within 1.1440. This behaviour of the price action indicates that the demand side is maintaining control, which may lead to seeking a long position.

The aforementioned opportunities can be found on the 4-hour chart, where there is a probability of correction and re-test of the broken resistance area at 1.1440, which currently acts as a support. In addition to the horizontal area, traders can pay attention to the short-term upward trend line running from the bottom of September 21 this year.

The key target for long positions is visible near level 1.1710. However, before the price can reach it, buyers would have to overcome local resistance around 1.1560.

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