On September 15, EUR/CHF broke below extremely strong support near 1.0750, which was formed during the past few months. At the same time, it broke below the support trendline as well as 50 Simple and Exponential Moving Average, reaching 1.0687 low.
The correction up followed and was stopped at 1.0748, where EUR/CHF reached the previously established support. This time it is acting as the resistance which up until this point is being respected. Therefore, as long as the daily close remains below 1.0748, the downside potential is wide open and the selling pressure is likely to increase.
Price can be expected to continue moving down, potentially to test the 1.0635 support level. This support is confirmed by 88.6% Fibs applied to the June-September move up as well as the 23.6% Fibs applied to the overall downtrend.
Considering that the 50% Fib support at 1.0738 has been broken and rejected, the downtrend could be starting from this point onwards. In the worst-case, spikes above 1.0748 can also be expected if the downtrend continuation is the correct scenario.
Key support levels: 1.0635
Key resistance levels: 1.0748
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
The correction up followed and was stopped at 1.0748, where EUR/CHF reached the previously established support. This time it is acting as the resistance which up until this point is being respected. Therefore, as long as the daily close remains below 1.0748, the downside potential is wide open and the selling pressure is likely to increase.
Price can be expected to continue moving down, potentially to test the 1.0635 support level. This support is confirmed by 88.6% Fibs applied to the June-September move up as well as the 23.6% Fibs applied to the overall downtrend.
Considering that the 50% Fib support at 1.0738 has been broken and rejected, the downtrend could be starting from this point onwards. In the worst-case, spikes above 1.0748 can also be expected if the downtrend continuation is the correct scenario.
Key support levels: 1.0635
Key resistance levels: 1.0748
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.