EUR/CHF Candlesticks and Ichimoku Analysis

The single currency finally resumed recent decline as suggested and broke below support at 1.4551, indicating decline from 1.5880 is still in progress and weakness to 1.4400 would be seen, however, break of 2009 low of 1.4300 is needed to confirm medium term downtrend from 1.6828 top has resumed and extend weakness to 1.4145 (100% projection of 1.5880 to 1.4577 measuring from 1.5448) but reckon psychological support at 1.4000 would remain intact.

On the upside, although minor recovery to 1.4551 (previous support turned resistance) is likely, renewed selling interest should emerge around the Tenkan-Sen (now at 1.4641) and bring such a decline to aforesaid downside targets. Only a weekly close above the Tenkan-Sen would suggest a temporary low is possibly formed and risk retracement to the Kijun-Sen (now at 1.4857) before prospect of another selloff.

Looking at the daily chart, the single currency broke below indicated support at 1.4551 as expected and resumed recent downtrend after meeting renewed selling interest below the Kijun-Sen and further weakness to 1.4400 and then retest of chart support at 1.4300 (2008 low) would be seen, however, loss of downward momentum would limit downside to 1.4276 (61.8% projection of 1.5240 to 1.4551 measuring from 1.4702) and 1.4145 (100% projection of 1.5880 to 1.4577 measuring from 1.5448) should remain intact.

On the upside, whilst recovery to the Tenkan-Sen (now at 1.4555) cannot be ruled out, offers should appear around the Kijun-Sen (now at 1.4588) and bring such a decline to aforesaid downside targets. Only a daily close above the Kijun-Sen would suggest a temporary low is possibly formed and risk retracement to 1.4650 and then 1.4700/05 (previous minor resistance and current level of the Ichimoku cloud bottom) but price should falter well below the upper Kumo (now at 1.4850)