• EUR/CHF extends the previous day’s pullback from a one-week high to pare Tuesday’s heavy gains.
• U-turn from monthly resistance line, looming bear cross on MACD lures sellers.
• Convergence of 100, 200-EMA and a fortnight-old ascending trend line appears a tough nut to crack for bears.

EUR/CHF holds onto the previous day’s bearish bias while refreshing intraday low near 0.9945 during early Thursday morning in Europe.

On Tuesday, the cross-currency pair marked the heaviest daily gains in 11 weeks but failed to surpass a downward-sloping resistance line from March 02.

Not only the failure to cross the key resistance line but the overbought RSI (14) and the impending bear cross on the MACD also lures the EUR/CHF pair sellers during the second consecutive loss-making day.

It’s worth noting, however, that the 100-bar and 200-bar Exponential Moving Average (EMA) joins a two-week-long ascending trend line to highlight the 0.9915-10 area as the key challenge for the EUR/CHF bears to tackle to keep the reins.

Following that, the 0.9900 round and multiple levels around 0.9850 can offer intermediate halts during the pair’s fall targeting the monthly low of around 0.9705.

On the flip side, a clear break of the aforementioned resistance line, close to 0.9985 at the latest, isn’t an open invitation to the EUR/CHF bulls as a downward-sloping trend line from January 12, near 1.0020, acts as an extra filter towards the north.

Should the EUR/CHF price manage to cross the 1.0020 hurdle, the odds of witnessing a rally towards the yearly top of around 1.0100 can’t be ruled out.

EUR/CHF: Four-hour chart

Trend: Limited downside expected