The euro could try to rebound to parity in the short term
Nevertheless, the euro could regain strength in the short term against its Swiss counterpart. Indeed, EUR/CHF seems to have struggled to lose further ground for the past few weeks and the downside momentum has slowed.
The RSI momentum indicator diverges upwards with the exchange rate, which most often preceded a consolidation, or even a rebound in the short term.
Nevertheless, it will be better to wait for a bullish signal in the price, such as a bullish engulfing or the crossing of the 20-day moving average – which has not been exceeded since June 16 – to expect a rebound. If this is the case, a rebound until at least the parity would be considered before a continuation of the underlying downtrend.
Entry: Buy at 0.9850
Risk/reward ratio: 2
Follow the evolution of the price of the EUR/CHF pair with IG.