EURCHF plunged to a new two-month low of 1.1266 after the aggressive sell-off below the 1.1300 handle on Tuesday. The near-term bias is looking negative with the RSI pointing down and is approaching the 30 level, while the MACD oscillator dived below the trigger line with strong momentum. Also, the 20- and 40-simple moving averages (SMAs) are following the bearish rally in price.
More declines would likely push the pair towards the support level of 1.1220, identified by the trough on September 21. Failure to hold above this support would drive the price towards the September’s 13-month low of 1.1180. If broken, this would bring into focus the psychological level of 1.1100.
In case of bullish actions, immediate resistance could be met the 1.1300 handle, before touching the 23.6% Fibonacci retracement level of the downleg from 1.1500 to 1.1266, around 1.1320. Higher up, further resistance could come from the 61.8% Fibonacci, which coincides with the 1.1355 level.
Concluding, EURCHF is creating a bearish tendency following the pullback on the 1.1500 critical level.
