EUR/CHF has shown renewed bullish momentum in recent sessions, pushing up from the 0.9300 area to check a major technical resistance confluence across the 0.9400 handle.

Try these key inflection points we’re watching on the 4-hour timeframe:

EUR/CHF 4-hour Forex Chart by TradingView

EUR/CHF has been caught in a large consolidation pattern through December, following a grinding downtrend that began in September 2024. The pair is now difficult a critical technical junction because it approaches the convergence of multiple resistance aspects.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. In case you haven’t yet done your homework on the euro and the Canadian dollar, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

Taking a look at the technicals, price motion is testing each the falling ‘highs’ pattern that’s been in place since September and the most important psychological level of 0.9400. The 100 SMA is a touch below the 200 SMA within the 0.9330 area, suggesting bears still have control of the medium-term trend, however the recent formation of rising ‘lows’ indicates growing bullish pressure.

For bears, the present test of resistance around 0.9400 could present a possibility, as this level aligns perfectly with the descending trendline of lower highs. With the pair having rallied over two each day ATR from 0.9300 over the past week, profit-taking could emerge here after the prolonged move.

If bearish reversal patterns form, we could see a move back towards the strong technical confluence across the 0.9320 area, where the monthly pivot point meets each moving averages and the rising ‘lows’ pattern.

Nevertheless, if bulls manage to push above 0.9400 with conviction and may sustain trade up there, which will attract technical buyers on net and we could see an extension towards the R1 pivot level at 0.9437, and potentially even the R2 pivot at 0.9563 (but this may likely require a fundamental catalyst to fuel that sort of move). The rising ‘lows’ pattern suggests growing bullish momentum, though counter-trend traders should exercise extra caution given the general downtrend since September.

Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of the few economic catalysts ahead that would disrupt this ranging behavior in the course of the holiday period.