EURCHF has broken past a major resistance zone around the 0.9300 major psychological handle, confirming that an uptrend could be gaining traction. The pair recently rallied from the swing low at 0.9178 and is currently trading around 0.9350 after testing the previous resistance-turned-support.

However, price could pull back to this broken resistance level to gather more bullish momentum before heading higher. The Fibonacci retracement tool shows where more buyers might be positioned to support the climb.

The 38.2% Fib is located at 0.9314, which lines up closely with the area of interest around the 0.93000 psychological level and could be the first line of defense for bulls. The 50% level sits at 0.9288, while a deeper pullback could reach the 61.8% Fib at 0.9262.

If any of the Fibonacci levels are able to hold as a floor, EURCHF could resume its climb to new highs or higher.

These retracement levels also converge with the broken resistance zone that’s likely to hold as support on dips. In addition, the 100 SMA and 200 SMA are positioned near these Fibonacci levels, adding an extra layer of dynamic support that could keep losses in check.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the rally is more likely to continue than to reverse. The gap between the moving averages is widening to reflect strengthening bullish pressure, and price is moving above both indicators to suggest strong upside momentum.

Stochastic is heading south to show that sellers are attempting to push lower, and the oscillator has plenty of room to slide before reaching the oversold region. This means that the correction could extend until bearish pressure fades.

RSI is also on the move down but is still holding above the midpoint area, suggesting that buyers could still have the upper hand. However, a break below the 50.00 mark would indicate that selling pressure is gaining strength.