• EURCHF jumps to its highest since early October

• Violates trendline that held strong since January

• Momentum indicators point at more gains

EURCHF had been in a steady decline since the beginning of the year, dropping to a 14-month low of 0.9416 on October 20. However, the pair regained traction and jumped above the downward sloping trendline that connects its lower highs in 2023, with the short-term oscillators currently being skewed to the upside.

If the positive momentum strengthens, the bulls could attack 0.9676, which is the 38.2% Fibonacci retracement of the 1.0096-0.9416 downleg. Further advances could then cease at the 50.0% Fibo of 0.9756. Failing to halt there, the price may then face the 61.8% Fibo of 0.9836.

Alternatively, should the pair reverse lower, the recent support of 0.9620 could act as the first line of defense ahead of the descending trendline. Even lower, the 23.6% Fibo of 0.9576 might provide downside protection. A violation of that zone could pave the way for the August low of 0.9514.

In brief, EURCHF is showing some signs of life lately, with the bulls getting more excited after the jump above the crucial descending trendline. However, the pair is still in a temporary rebound as the long-term bearish pattern remains intact.