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EUR/CHF Price Analysis: Attempting corrective bounce amid oversold conditions

 

  • EUR/CHF is looking oversold, as per key daily chart indicator. 
  • The hourly chart is reporting a triangle breakout. 
  • A corrective bounce to the 5-day average hurdle could be in the offing. 

EUR/CHF is looking to regain some poise from three-year lows reached on Wednesday.

The pair is currently trading at 1.0775, representing marginal gains on the day, having hit a low of 1.0742 yesterday. That was the lowest level since April 2017.

The bounce could be extended further, as the 14-day relative strength index (RSI) is hovering well below 30 for the first time since August 2018, indicating extreme oversold conditions.

EUR/CHF, Daily chart

(see more posts on EUR/CHF, )
EUR/CHF, Daily chart

- Click to enlarge

Further, the hourly chart shows a descending triangle breakout and a bullish divergence of the relative strength index.

The pair could challenge the 5-day average hurdle at 1.0777.

Trend: Corrective bounce likely

EUR/CHF, Hourly chart

(see more posts on EUR/CHF, )
EUR/CHF, Hourly chart

- Click to enlarge

 

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Omkar Godbole
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies. Omkar has a master's degree in finance and is constantly engaged in monitoring the situation on the world financial markets.
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