FxWirePro: EUR/CHF spikes higher from multi-year lows, break above 110-EMA to fuel further gains

EUR/CHF chart - Trading View 

EUR/CHF extends previous session's spike, trades 0.33% higher on the day at 1.0632 at around 12:40 GMT.

The pair is extending recovery from multi-year lows at 1.05035, scope for further upside. 

The single currency remains bid on Franco-German proposal for a recovery fund. 

German Chancellor Merkel and French President Macron announced a recovery fund of around 500 billion euros for the recovery from the coronavirus crisis. 

Technical indicators are showing signs of recovery. Oscillators show bullish momentum.

Volatility is rising and price has broken above 55-EMA and daily cloud and is testing 110-EMA resistance at 1.0650.

'Bullish divergence' on RSI on the daily charts adds to the bullish bias. Break above 110-EMA will fuel further gains in the pair.

Next major resistances align at 38.2% Fib at 1.0715 ahead of 50% Fib at 1.0781 and 200-DMA at 1.0779.

On the flipside, failure at 110-EMA and retrace below cloud will negate any upside in the pair.