EURCHF has been gradually trading higher, moving inside a shallow rising channel on its 1-hour time frame. 

Price is currently testing the top of the range at the 1.0900 major psychological level, which might hold as resistance.

In that case, EURCHF could soon head back to the channel support at the 1.0750 minor psychological level before resuming the climb. Support could also be found at the mid-channel area of interest near the 1.0800 mark.

The 100 SMA is above the longer-term 200 SMA, which means that the uptrend is likely to carry on. However, stochastic and RSI are on the move down so a bit of correction might still be possible before the climb resumes. If buying pressure is strong enough, an upside break past the channel resistance might be seen.

There are no major event risks for this pair today, as the ECB has already announced its monetary policy statement last week while the SNB has nothing lined up in the next few days. The Swiss foreign currency reserves report indicated a small increase in holdings but not big enough to suggest that the central bank is actively intervening in the forex market. 

Only medium-tier reports from the euro zone and Switzerland are on the docket. This includes the Swiss unemployment rate, which is expected to hold steady at 3.3%, and the German and French trade balance.

Without any major catalysts, the pair could stay in range and sell off from the dovish bias that the ECB shared last week. Recall that Draghi said that they are open to further easing if inflation falls further, announcing downgrades on their growth and CPI estimates as well.

By Kate Curtis from Trader’s Way