• EURCHF built on the recent bullish momentum and rallied to near two-month tops.
• Bulls broke through intermediate resistance near 100-day SMA and 23.6% Fibo. level.
• The set-up warrants some consolidation/a modest pullback before the next leg up.
• The pair seems all set to surpass 1.0700 mark and test 1.0765-70 confluence hurdle.
Since it’s Throwback Thursday, we look back to our EURCHF buy call initiated on May 19. The pair extended last week’s descending trend-line breakout momentum and rallied to the highest level in almost two months. A sustained strength above 100-day SMA and the 23.6% Fibonacci level of the 1.1034-1.0503 downfall was seen as a fresh trigger for bullish traders.
Meanwhile, oscillators on the daily charts maintain their bullish bias, albeit have moved closer to overbought territory. Nevertheless, the set-up still seems tilted in favour of bullish traders. However, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for the next leg up.
The pair seems all set to surpass 38.2% Fibo. level, around the 1.0700 region, and aim to test the 1.0765-70 confluence resistance. The mentioned barrier comprises of the very important 200-day SMA and 50% Fibo. level, which might prove to be a tough nut to crack for bulls.