EUR/CHF prices forecast: the bearish impulse grows within the consolidation range

• The EUR/CHF crossing is being negotiated near the lower limit of its consolidation range of several weeks between 0.9300 and 0.9430.
• The bassists are still in control while the price action is inclined towards the lower Bollinger band.
• The RSI is maintained below the neutral brand in 41.83, indicating a slight bearish impulse with potential for more declines.

The euro (EUR) is still under pressure against the Swiss Franco (CHF) on Thursday, negotiating near the lower limit of its consolidation of several weeks between 0.9300 and 0.9430. At the time of writing, the EUR/CHF is around 0.9313, with a slight fall in the day and on the way to register a weekly loss, since the crossing fights to attract a significant purchase interest in the middle of a persistent bearish impulse.

From a technical point of view, the torque has been caught in a lateral range since the beginning of May, struggling to find a sustained directional conviction. Bollinger’s bands of 20 days are showing early signs of narrowing, while the price action continues to gravitate towards the lower band, indicating a bias down persistent.

A daily closure below the psychological level of 0.9300 could serve as a technical trigger for new sales, potentially exposing support levels about 0.9250 or even 0.9200.

Impulse indicators paint an equally cautious image. The relative force index (RSI) is 41.83, reflecting a mild bear bias but leaving room for more declines before approaching overall territory. Meanwhile, the average directional index (ADX) has risen to 22.28. Although still below the threshold that would indicate a strong trend, the increase suggests that market participants are beginning to position themselves for possible breakout after weeks of consolidation.

Unless the bulls manage to recover territory above the middle zone around 0.9350 and eventually test the resistance band of 0.9400-0.9430, which is also aligned with the Fibonacci recoil levels of 50% of the fall of April, located at 0.9428, the bias will probably continue to fall down. Until then, the Euro-Franco crossing is still vulnerable to fall below the key support, especially if the general feeling of the euro weakens.