EUR/CHF Price Analysis: Pullback possible amid mixed signals

• EUR/CHF touches 50-week SMA and recoils
• RSI on daily chart indicates possibility of a pullback. 
• Symmetrical Triangle has formed on 4-hour chart with breakout likely. 

EUR/CHF has rebounded from the 0.9254 December 2023 lows and rallied up to resistance from a key barrier in the form of the 50-week Simple Moving Average (SMA). The pair is probably still in a long-term downtrend despite recent strength.

The pair is converging with the Relative Strength Indicator (RSI), a momentum study. This is a bullish sign. The most recent peak in price was accompanied by a relatively higher peak in RSI when compared to the previous peak in price (circled). This is convergence and suggests underlying strength.

A further bullish sign is that the pair has broken above the trendline.

The pair has broken above all the key Moving Averages and the 200-day SMA is acting support. EUR/CHF has also moved above the previous higher low of the downtrend. These are both signs indicating that it is probably in a bullish intermediate trend, favoring bulls on that time horizon.

EUR/CHF has formed a Symmetrical Triangle on the 4-hour chart suggesting indecision. The pattern has equal chances of it breaking out in either direction, however, some analysts hold that the odds slightly favor a breakout in the direction of the trend prior to the formation of the triangle, which in this case is bullish.

Should price breakout higher it will probably not rise very much higher before capitulating since triangles are usually the penultimate moves in trends.

The RSI has declined visibly during the formation of the triangle, however, suggesting underlying weakness and a chance price could break lower.

The 4-hour chart is used to assess the short-term trend. The series of rising peaks and troughs since the December 2023 lows indicates the pair is in a short-term uptrend.