- September 29, 2020
- Posted by: Analysis Team
- Category: Forex News
- EUR/CHF remains on the offers for the third straight day.
- Risks further falls amid likely bull pennant on the hourly chart.
- Hourly RSI points south while within the bearish region.
EUR/CHF remains on the back foot on Tuesday, extending its bearish streak into a third straight day.
The bulls are likely to see no reprieve, as the technical set up remains in favor of the bears in the near-term.
The spot has charted a potential bull pennant on the hourly sticks, which is a bearish continuation pattern.
Therefore, a break below the rising trendline support at 1.0785 will validate the pattern, opening floors for a test of 1.0775, the confluence of Monday’s low and the critical 200-hourly Simple Moving Average (HMA).
The next downside target is aligned at 1.0750, the psychological level to beat for the bears.
The hourly Relative Strength Index (RSI) points south while trending below the midline, pointing to more losses ahead.
On the flip side, buyers need to seek a sustained break above 1.0792, where the 21-HMA coincides with the rising trendline resistance.
Further north, the bearish 50-HMA at 1.0797 could challenge the bulls’ commitment.
EUR/CHF: HOURLY CHART