- The EUR/CHF cross is trading near the lower boundary of its multi-week range between 0.9300 and 0.9430.
- Bears remain in control as price action leans toward the lower Bollinger Band.
- The RSI is hovering below the neutral mark at 41.83 indicates slight bearish momentum with potential for more decline.
The Euro (EUR) remains under pressure against the Swiss Franc (CHF) on Thursday, trading near the lower boundary of its multi-week consolidation range between 0.9300 and 0.9430. At the time of writing, EUR/CHF is hovering around 0.9313, down slightly on the day and on track to post a weekly loss down slightly on the day and on track to post a weekly loss, as the cross struggles to attract meaningful buying interest amid persistent bearish momentum.
From a technical standpoint, the pair has been locked in a sideways range since early May, struggling to find sustained directional conviction. The 20-day Bollinger Bands are showing early signs of narrowing, while price action continues to gravitate toward the lower band, indicating a persistent downside bias.
A daily close below the 0.9300 psychological level could serve as a technical trigger for fresh selling, potentially exposing support levels near 0.9250 or even 0.9200.
Momentum indicators paint a similarly cautious picture. The Relative Strength Index (RSI) stands at 41.83, reflecting a mild bearish bias but leaving room for further declines before approaching oversold territory. Meanwhile, the Average Directional Index (ADX) has risen to 22.28. Although still below the threshold that would indicate a strong trend, the uptick suggests that market participants are beginning to position for a potential breakout after weeks of consolidation.
Unless bulls manage to reclaim territory above the mid-range zone around 0.9350 and eventually test the 0.9400-0.9430 resistance band, which also aligns with the 50% Fibonacci retracement levels of the April decline, located at 0.9428, the bias will likely remain skewed to the downside. Until then, the Euro-Franc cross remains vulnerable to slipping below key support, especially if broader Euro sentiment softens.
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