EUR/CHF Price Analysis: Attempting corrective bounce amid oversold conditions
- EUR/CHF is looking oversold, as per key daily chart indicator.
- The hourly chart is reporting a triangle breakout.
- A corrective bounce to the 5-day average hurdle could be in the offing.
EUR/CHF is looking to regain some poise from three-year lows reached on Wednesday.
The pair is currently trading at 1.0775, representing marginal gains on the day, having hit a low of 1.0742 yesterday. That was the lowest level since April 2017.
The bounce could be extended further, as the 14-day relative strength index (RSI) is hovering well below 30 for the first time since August 2018, indicating extreme oversold conditions.
Further, the hourly chart shows a descending triangle breakout and a bullish divergence of the relative strength index.
The pair could challenge the 5-day average hurdle at 1.0777.
Trend: Corrective bounce likely