EURCHF is testing its 2023 lows again, trading a tad below the August 23, 2022 low. It has been a one-way street since the January 13, 2023 high of 1.0096 as the bulls have repeatedly failed to negate the acute bearish pressure. The bulls could take some solace in the probable formation of a bullish double bottom pattern and the possible subsequent break of the 0.9647 neckline.

In the meantime, the momentum indicators appear mixed at this stage. More specifically, the Average Directional Movement Index (ADX) has sunk below its 25-threshold, and it is firmly pointing to a trendless market. Interestingly, the RSI remains a tad below its 50-midpoint, revealing the continued presence of bearish pressure. More importantly, the stochastic oscillator is hovering below its midpoint and is currently testing the support set by its moving average (MA). A decisive move below its MA could be seen as a significant bearish signal in EURCHF.

Should the bears remain committed to making lower lows, they would try to keep EURCHF below the August 23, 2022 low at 0.9552. They could then gradually stage a move towards the September 26, 2022 low at 0.9403 and eventually have the chance to record a new all-time low.

On the flip side, the bulls are keen on recording small victories. They could attempt to push EURCHF above both the 0.9952 level and the June 22, 2023 downward sloping trendline. If successful, they could then have a go at testing the busier 0.9619-0.9650 range that is defined by the January 15, 2015 low, the 50-day simple moving average (SMA) and the 23.6% Fibonacci retracement of the June 9, 2022 – September 26, 2022 downtrend respectively.

To sum up, the bears continue to hold all the cards but a move above the 0.9552 level could potentially open the door to a short-term advance towards the 0.9650 area.