The common European currency has been trading in a channel up against the Swiss Franc for the last four months. However, as apparent during the last four weeks, the rate has diminished its trading range.
The Euro failed to reach the upper channel boundary prior to reversing near the 1.1720 mark. In addition, the pair is gradually moving towards an upward-sloping trend-line circa 1.1620.
Given that the northern side is guarded by the 55-, 200– and 100-hour SMAs and the weekly PP in the 1.1646/60 territory, the Euro might be reluctant to breach this resistance.
Technical indicators suggest that the rate might once again appreciate during next week.
However, in case the up-trend is breached, the pair should approach the bottom channel boundary circa 1.1520.
The Euro failed to reach the upper channel boundary prior to reversing near the 1.1720 mark. In addition, the pair is gradually moving towards an upward-sloping trend-line circa 1.1620.
Given that the northern side is guarded by the 55-, 200– and 100-hour SMAs and the weekly PP in the 1.1646/60 territory, the Euro might be reluctant to breach this resistance.
Technical indicators suggest that the rate might once again appreciate during next week.
However, in case the up-trend is breached, the pair should approach the bottom channel boundary circa 1.1520.
