EUR/CHF’s down trend resumption last week and dropped to as low as 1.0906. Initial bias remains on the downside this week. Current fall from 1.1476 is part of the whole decline from 1.2004. Next target is 100% projection of 1.2004 to 1.1173 from 1.1476 at 1.0645. On the upside, break of 1.1062 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development firstly suggests that down trend from 1.2004 is still in progress. More importantly, it’s likely a long term down trend itself, rather than a correction. Outlook will remain bearish as long as 1.1476 resistance holds. EUR/CHF should target 1.0629 support and below.
