EUR/CHF: The tight multi-day consolidation in the lower 1.4300’s has finally been broken, with the market collapsing to fresh all-time lows before finally stalling out by major psychological barriers at 1.4000. From here, it is simply too difficult to call. On the one hand, the intense downtrend is very much intact and could open additional declines below 1.4000 following the latest corrective bounce. However, with short-term, medium-term and longer-term studies all looking exhausted, there is also the potential for the formation of major base by 1.4000. The key levels to watch above and below over the coming sessions come in by 1.4365 and 1.4000 respectively.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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