FxWirePro: EUR/CHF struggles to close below 110-EMA, bearish divergence keeps scope for downside

• EUR/CHF struggles to close below 110-EMA on Monday's trade, bias remains bearish.
   
• Technical analysis bias is bearish. Break below 110-EMA will see further downside.
   
• Momentum studies bearish, Stochs in oversold territory and MACD supports bias lower.
   
• Price action has dipped into daily cloud and we see -ve DMI dominance with ADX at 44 and rising in support of the downtrend.
   
• Further we evidence bearish divergence on Stochs which adds to the bearish bias.
   
• Break below 110-EMA eyes 200-DMA at 1.1645. While on the flipside, rejection at 110-EMA will see some consolidation.

Support levels - 1.17, 1.1678 (23.6% Fib), 1.1645 (200-DMA)

Resistance levels - 1.1742 (110-EMA), 1.1775 (5-DMA), 1.18

Call update: We stand by our previous call (https://www.econotimes.com/FxWirePro-EUR-CHF-Trade-Idea-1321960).

Recommendation: Raise SL to 1.18. Hold the short call.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 1.22585 (Neutral), while Hourly CHF Spot Index was at 17.4121 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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