EUR/CHF’s down trend resumed by breaking through 0.9205 last week, but recovered after dipping to 0.9178. Initial bias is turned neutral this week and some consolidations could be seen. Recovery should be limited below 0.9325 resistance to bring another fall. Firm break of 0.9178 will target 100% projection of 0.9452 to 0.9208 from 0.9325 at 0.9082.
In the bigger picture, outlook remains bearish with EUR/CHF staying well inside long term falling channel after multiple rejection by 55 W EMA (now at 0.9383). Next target is 61.8% projection of 1.1149 to 0.9407 from 0.9928 at 0.8851. Break of 0.9452 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish in case of strong rebound.
In the long term picture, overall long term down trend is still in progress in EUR/CHF. Outlook will continue to stay bearish as long as 55 M EMA (now at 0.9820) holds.
