FxWirePro: EUR/CHF edges higher from 8-month lows at 1.1368, bias lower as long as trendline resistance at 1.1570 holds

• EUR/CHF edges higher from 8-month lows at 1.1368, trades 0.55% higher on the day.
   
• The pair has retraced break below 38.2% Fib at 1.1476 and is currently trading shy of 5-DMA at 1.1527.
   
• Momentum studies are biased lower and bearish divergence keeps scope for further downside.
   
• Recovery lacks traction and we see bearish bias intact as long as trendline resistance at 1.1570 holds.
   
• Euro supported as Italy’s anti-establishment 5-Star Movement and far-right League push towards formation of a government.
   
• Further, data shows sentiment across the European continent is holding high. But it is worth noting that the survey period is before the recent turmoil.
   
• Momentum studies are biased lower and bearish divergence keeps scope for further downside.
   
• On the flipside, 5-DMA is immediate resistance. Retrace above 200-DMA invalidates bearish bias.

Support levels - 1.1476 (38.2% Fib), 1.1446 (2018 low), 1.14, 1.1388 (Oct 2 lows), 1.1313 (50% Fib)

Resistance levels - 1.1530 (5-DMA), 1.1650 (200-DMA), 1.1678 (23.6% Fib)

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