FxWirePro: EUR/CHF bounces off trendline support, recovery capped at 21-EMA and daily cloud

EUR/CHF chart - Trading View 

Technical Analysis: Bias Neutral

- EUR/CHF was is extending bounce off trendline support

- The pair is grinding higher for the 2nd straight session

- Price action is above 200-DMA, but remains capped between 55 and 110 EMAs

- Recovery attempts find stiff resistance at 200H MA and major resistance lies at 55-month EMA at 1.1083

- Gravestone Doji formation on the previous week's candle keeps downside pressure

- Rejection at 200H MA and daily cloud and breach below trendline support will drag the pair lower

Support levels - 1.0935 (Trendline support), 1.0911 (110-week EMA), 1.0860 (200-DMA)

Resistance levels - 1.0967 (Nearly converged 200H MA and Cloud base), 1.0972 (21-EMA), 1.0978 (55-EMA)

Summary: Stronger economic data in the Eurozone improved the risk appetite and drove market participants towards riskier assets. 

The single currency boosted by the upbeat PMI data released last week. Focus now on the German IFO Business Climate for May for further impetus.

Major trend in the pair is neutral. Price action remains capped between 55 and 110 EMAs. Decisive break above will provide clear directional bias.