FxWirePro: EUR/CHF breaks 200-DMA, upside momentum gains traction

EUR/CHF chart - Trading View 

EUR/CHF has broken above 200-DMA resistance to hit 4-week highs at 1.0754, outlook bullish.

The pair was trading 0.36% higher on the day at 1.0753 at around 10:45 GMT, scope for further upside.

The single currency gained across the board on hopes of a vaccine for coronavirus. U.S. News said Moderna Inc.’s Covid-19 vaccine produced antibodies to the coronavirus in all patients tested in an initial safety trial.

Further, German Chancellor Angela Merkel and Spanish Prime Minister Pedro Sánchez committed to moving forward with the EU Fund, supporting the euro.

Improvement of key fundamentals in the eurozone amidst the massive monetary stimulus by central banks to keep upside in the pair.

Momentum studies are bullish. RSI is above 60 with strong upside bias. 200-DMA and cloud breakout fuels further upside. 

Next bull target lies at 1.0781 (50% Fib) ahead of 1.0846 (61.8% Fib). Failure to hold break above 200-DMA dents upside. 

Major Support - 1.0735 (200-DMA)

Major Resistance - 1.0781 (50% Fib)