EUR/CHF Candlesticks and Ichimoku Analysis

The single currency dropped briefly to 1.4551, however, lack of follow through selling and the subsequent rebound from there resulted in few weeks of narrow sideways trading and further consolidation should take place. As price is still holding below both falling Tenkan-Sen and Kijun-Sen, suggesting bearishness remains but break of said support is needed to confirm decline from 1.5880 has resumed and extend weakness towards 1.4400 but reckon support at 1.4300 would remain intact.

On the upside, expect recovery to be limited to the Tenkan-Sen (now at 1.4725) and 1.4899-1.4905 (current level of the Kijun-Sen and previous resistance) should hold, bring such a decline to aforesaid downside targets. Only a weekly close above there would suggest a temporary low has been formed and risk stronger rebound to 1.5006-12 (previous support turned resistance), once this level is penetrated, this would signal the fall from 1.5448 has ended, then stronger rebound to the Ichimoku cloud bottom (now at 1.5127) and then resistance at 1.5140 but reckon upper Kumo (now at 1.5197) would hold on first testing.

Looking at the daily chart, after early volatile price action on 5 Feb, the currency pair remained locked within narrow range and further consolidation would take place, however, reckon 1.4700/05 holds, outlook remains bearish for recent decline to resume after sideways trading and bring retest of recent low at 1.4551 (also on 5 Feb), break there would extend recent decline to 1.4500, then 1.4400 but support at 1.4300 should remain intact.

On the upside, above indicated minor resistance at 1.4700/05 would prolong consolidation and risk stronger rebound to the Ichimoku cloud bottom (now at 1.4786, however, only a daily close above there would suggest a temporary low has been formed and then correction to 1.4905/10 (previous resistance and current level of the upper Kumo) would be seen