After a surprise interest rate hike from the Swiss national bank in mid-June, EUR/CHF has been trending in a bearish manner on the four-hour chart, trading within a descending channel, with sellers pushing the market below the 50 and 200 EMAs. However, more hawkish comments from ECB's president Lagarde offered some support to the common currency, which tipped the scales in its favour.
EUR/CHF then bottomed around its seven-year lows at 0.99431 as the falling channel's support shielded the further decline. In Friday's trading session, buyers put the pair on the front foot for the second consecutive day. If they manage to keep it up, the price can be heading towards the immediate resistance at 1.00481. Overcoming this barrier would give the bulls hope that they can recapture the channel's upper line, which converges with the 50-EMA around 0.00881. Prices may become more attractive for new buyers if future fundamentals favour the euro. It may result in a break of the falling channel, which would turn the outlook bullish. In that case, the previous market top at 1.01538 will come into focus.
Otherwise, should selling forces increase, the price may drop back down to retest the last bottom at the 0.99431 previous level of interest for another touch on the channel's support line.
Short-term momentum oscillators reflect a mixed picture. A pullback from oversold territory has brought the RSI into neutral territory. Momentum points north but hovers below the 100 mark. The MACD bars shrink after crossing over the signal line in the negative area.
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