The euro could try to rebound to parity in the short term
However, the euro could gain strength in the short term against its Swiss counterpart. Indeed, EURCHF appears to have struggled to lose further ground in recent weeks and downward momentum has slowed.
The RSI momentum indicator diverges upwards with the exchange rate, which very often preceded a consolidation, or even a rebound in the short term.
However, it will be best to wait for a bullish price signal, such as a bullish engulfing or a breach of the 20-day moving average – which has not been surpassed since June 16 – to expect a rebound. If this is the case, a rebound to at least parity would be considered before a continuation of the underlying bearish trend.
Entry: Buy at 0.9850
Risk / return ratio: 2
Follow the evolution of the price of the EUR / CHF pair with IG.