• EURCHF recovers strongly from 4-month low

• Decisive break above 200-day SMA boosts rebound

• Momentum indicators improve significantly

EURCHF has been in a steep recovery in the past few sessions, attempting to erase the slide from its 2024 peak. Moreover, the advance accelerated following the break above the 200-day simple moving average (SMA), with the bulls now eyeing the 50-day SMA.

Should buying pressures persist, the pair might conquer the 50-day SMA and challenge 0.9796, which is the 23.6% Fibonacci retracement of the 0.9252-0.9928 upleg. In case of an upside violation, attention could shift to the 0.9836-0.9847 range defined by the May resistance zone and the April peak. Further upside attempts could meet resistance at the 2024 peak of 0.9928.

Alternatively, if the price reverses lower, immediate support could be found at the 38.2% Fibo of 0.9670. Lower, the pair’s retreat could come to a halt at the 50.0% Fibo of 0.9590, which overlaps with the 200-day SMA. Should that barricade also fail, additional support could be found at the 61.8% Fibo of 0.9510.

In brief, EURCHF has been undergoing a solid recovery, which strengthened after the clear break above the 200-day SMA. Moving forward, a test of the 50-day SMA seems to be the next target of the bulls.