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EUR/CHF Might be Turning Bullish

In July EUR/CHF consolidated in some what of a triangle as you can see in the 4H chart. With the prevailing trend being bearish, EUR/CHF held its bearish momentum throughout the consolidation process, reflected by the 4H RSI holding mostly below 60 during the month. However, at the end of July, things seem to have shifted. 

Price popped up above the triangle to 1.2177 before pulling back. The RSI popped up above 70. The moving averages, which were clustered together is not pulling into positive slope and into bullish alignment.

After the pullback, price held above the triangle, showing respect to a price bottom. Price also held above the moving averages after crossing above them, showing a "slingshot" signal, which is a type of reversal signal. The RSI held above 40, showing maintenance of the bullish momentum. 


(EUR/CHF 4H Chart 8/5)

When you look at the daily chart, you see that price still needs to clear the 1.2180 level to clear the EUR/CHF's 100- and 50-Day SMAs. If the RSI pops above 60 that would help the bullish case as well because as long as it holds south of 60, it shows bearish bias. 

The next resistance after the break above 1.2180 would first be the 1.22 pivot, then the common highs since March around 1.2230. Only a break above 1.2250 should open up a bullish outlook outside of the short-term. That scenario would open up the common highs around 1.2375.

(EUR/CHF Daily Chart 8/5)