special reports

Currency Pair: EUR/CHF
Chart: 15 Min Charts
Short-Term Bias: Short

The EUR/CHF has broken below the lower channel, and has crossed below the 120 SMA line within the last few hours of trading.

Analysis Update

                The EUR/CHF has broken below the lower channel, and has crossed below the 120 SMA line within the last few hours of trading.  The pair looks to be testing 1.6180 (61.8% Fib level) for support, and may hold at this level throughout the trading session.

                We will continue to hold a bearish outlook for the EUR/CHF, and expect the pair to resume its move to the downside. If our indicators continue to reflect downward momentum, the pair is expected to break below 1.6148, and may find support at 1.6125 (21.4% Fib level). However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

Analysis

Price action for the EUR/CHF has held within the 1.5986 to 1.6374 range since May, and may offer profitable opportunities for forex traders. After finding support at 1.6097 last week, the euro has gained momentum to the upside, and looks to have found resistance at 1.6204 (78.6% Fib level).

 A bearish divergence may be in the works as the RSI continues to move lower, and may trigger a selloff in the pair over the next few trading session. If the bearish divergence comes into play, we expect the EUR/CHF to break below the lower channel, and may test 1.6125 (21.4% Fib level) for support. Be sure to check out Jamie’s Technical Outlook on the major currencies. Be sure to check out Jamie’s Technical Outlook for the additional information on the major currency pairs.

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