EURCHF – Sentiment increasingly negative
11th April 2016
. EURCHF – Sentiment turning Bearish
For 6 weeks EURCHF has fluctuated around the key 21 week moving average without clearly breaking to the downside, on a closing basis, or attracting any significant renewal of buying interest.
But last week’s decline resulted in a clear break below that point for the first time since last July. More importantly confirming negative triggers have been given in RSI, Momentum and DMI Differnce indicators (levels trading below their moving averages).
These negative factors in EURCHF are countered in a minor way by the proximity of a 38% correction to the April to February improvement (1.0832) and a bullish channel of higher weekly lows and highs (currently at 1.0875).
Nonetheless, although we look for an early break of those points to confirm, our signals for sentiment are left negative with immediate scope to the 1.0718/37 area.
