EURCHF looks to test key multi-year support targets
The EURCHF is trading just off of the swing low levels for today at 1.0633. The price reach that level in the London morning session but rebounded to 1.06454, before rotating back down. The last hourly bar equaled the earlier low at 1.0633. We currently trade just above that level I.06346.
Taking a broader look from the weekly chart below, the pair today fell below a lower trend line cutting across at 1.06494. That trend line has 4 points along the line including a low from a few weeks ago.
The break below the level is another bearish development. However, the price is also approaching key swing low levels from 2017 and 2016. The low price from 2017 comes in at 1.0631. The low price from 2016 comes in at 1.0618. That area (between 1.0618-31) will likely attract low risk dip buyers with stops on a break below.
It will take a move back above the broken trend line at 1.06494 (and staying above) would be needed now to give the dip buyers a little control. It does not necessarily signal the bottom is in, but it will give some hope that a corrective rebound may begin for the dip buyers.
