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.
