FxWirePro: EUR/CHF capped at 21-EMA, decisive break above required for further upside

Chart - Courtesy Trading View 

EUR/CHF was trading muted at 0.9677 at around 03:55 GMT, after closing 0.54% higher in the previous session.

The pair finds stiff resistance at 21-EMA, decisive break above required for upside continuation.

Fresh risk-off sentiment on headlines surrounding China keep the Swiss franc buoyed, capping upside in the pair.

News suggesting the Biden administration to ask congress to approve a $1.1 billion arms sale to Taiwan escalates China-US tensions.

Focus now on German inflation data, German HICP is expected to advance further to 8.7% amid the energy crisis, , higher than the prior release of 8.5%.

Major trend in the pair is bearish. 21-EMA is stiff resistance and is capping the pair at 0.9684. Decisive break above could change near-term dynamics.

Major Support Levels: 

S1: 0.9642 (5-DMA)

S2: 0.9629 (200H MA)

Major Resistance Levels: 

R1: 0.9684 (21-EMA)

R2: 0.9796 (Upper BB)

Summary: EUR/CHF pivotal at 21-EMA, watch out for decisive break above for more upside.