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Corrective Bounce

EURCHF TECHS

EURCHF is trading higher today and the cross has breached resistance at 0.9700, the Aug 18 high.

  • From a technical standpoint, the move higher appears to be a correction.
  • Momentum studies (14-day RSI) have recently highlighted a bullish divergence set-up between price and momentum. The latest recovery confirms this momentum set-up and gains are allowing a recent oversold condition to unwind.
  • The cross is through the 20-day EMA. The next key resistance point to watch is at the 50-day EMA at 0.9827.
  • Last week’s low of 0.9553 (Aug 23), is the bear trigger.

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