The long-term bearish trend prevails in the dynamics of EUR/CHF. However, in the medium term, the pair is striving to develop an upward correction due to the weakness of the Swiss franc and the strengthening of the euro after the ECB meeting last week, where the key interest rates were once again raised by 0.25%.
As of writing, the pair is trading near the 0.9800 level, strengthening from the local multi-month low of 0.9675 reached at the end of last month after the crisis at Credit Suisse bank in Switzerland earlier this year.
EUR/CHF is rising towards key medium-term resistance levels at 0.9830 (144 EMA on the daily chart), 0.9870 (200 EMA on the daily chart), 0.9895 (50 EMA on the weekly chart). Their breakout would indicate a break into the medium-term bullish market zone.
On a global scale, EUR/CHF remains within the long-term bearish market zone, and in an alternative scenario, a breakout of the support zone near the levels of 0.9770, 0.9760 (200 EMA on the 1-hour chart), 0.9758 (200 EMA on the 4-hour chart) may signal a resumption of short positions.
In this case, the pair will move inside the downward channel on the weekly chart towards its lower boundary, near the 0.9600 level.
A breakout of the key long-term resistance levels at 1.0395 (200 EMA on the weekly chart, 50 EMA on the weekly chart), 1.0400 may bring EUR/CHF into the long-term bullish market zone.
However, only a rise into the zone above the resistance levels at 1.1940 (200 EMA on the monthly chart), 1.2000 will lead EUR/CHF into the global bullish market zone.
For now, short positions remain preferable below the resistance levels of 0.9870, 0.9895.
Support levels: 0.9800, 0.9770, 0.9760, 0.9758, 0.9700, 0.9675
Resistance levels: 0.9830, 0.9870, 0.9895, 0.9900, 0.9970, 1.0000, 1.0100, 1.0200, 1.0240, 1.0300, 1.0395, 1.0400