FxWirePro: EUR/CHF Medium-Term Outlook

EUR/CHF chart - Trading View 

Overview: 

EUR/CHF languishes near multi-month lows as the Coronavirus pandemic fuels concerns of a global recession. The pair has been retreating since April 2018 when it hit levels above the 1.20 mark. Price action is currently at 1.0550 (levels unseen since August 2015). As investors remain wary over whether the global coordinated policy action will likely help ramp up growth, further declines in the pair look imminent. 

Technical Analysis: 

- Major and minor trend as evidenced by GMMA are strongly bearish on daily and weekly charts 

- Price action has broken strong trendline support at 1.0620, hovers around 61.8% Fib at 1.0550

- Momentum studies are strongly bearish, Stochs and RSI are sharply lower

- 21-EMA caps recovery, price action is below 200-DMA and daily cloud

- 'Death Cross' (bearish 50-SMA crossover on 200-SMA) on weekly charts to plummet prices

Major Support Levels - 1.0550 (61.8% Fib), 1.0280 (May 2015 low)

Major Resistance Levels - 1.0613 (21-EMA), 1.0689 (55-EMA)

Summary: Analysis points to further weakness in the pair. Drag till 1.0280 (May 2015 low) likely. Upticks could be used to accumulate short positions. Decisive breakout at 200-DMA (currently at 1.0900) could negate near-term bearish bias.