The EUR/CHF currency pair encountered resistance near the 0.9234 level during last week’s recovery attempt. While the immediate bias remains neutral for the current week, the pair’s upward momentum is likely to continue given that the 0.9176 support level remains intact. A successful break above 0.9234 would initially target the 0.9265 resistance zone, with a sustained move beyond that level potentially extending gains toward the 0.9379 mark—the 100% projection level derived from the 0.8979 to 0.9264 range.
From a broader technical perspective, the breach above the medium-term downtrend line suggests that the 0.8979 level has established itself as a significant trough. The bullish MACD convergence on the weekly chart further supports the notion that the subsequent rally from this level is poised to at least partially reverse the previous decline from 0.9928, with potential to evolve into a sustained medium-term uptrend. A definitive move above 0.9394 would bolster this bullish scenario. In the near term, the risk profile continues to favor upside movements as long as the 0.9094 support level remains unbroken during any corrective phases.
On the longer-term horizon, the overall bearish trajectory persists provided that the 0.9407 level—previously a key support but now acting as resistance following the 2022 lows—remains intact. However, should the pair convincingly break above this threshold, it would signal completion of a five-wave decline pattern from the 1.2004 peak in 2018 down to the 0.8979 trough. Such a development would open the door for a more substantial recovery, with the 38.2% retracement of the entire 1.2004 to 0.8979 decline (approximately 1.0135) emerging as a viable medium-term target.
