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Technical Analysis – EURCHF back to neutral but potential for gains above Ichimoku cloud

EURCHF failed to close above the daily Ichimoku cloud on Monday, after a strong rally on Friday took it to 1.0925, which is just shy of the 61.8% Fibonacci level at 1.0928 of the fall from September’s 1.1048 peak to the November low of 1.0733.

The bias is neutral now as prices linger in the cloud. A close above the cloud would bring a bullish bias for an opportunity to target Friday’s high of 1.0925 and a break there would open up the September peak at 1.1049. Above the cloud keeps the upside open for further gains near term, as long as RSI remains in bullish territory above 50 and the tenkan-sen line remains positive. Below the cloud would shift the bias.

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