FxWirePro: EUR/CHF breaches 200-DMA support, hits 5-month low at 1.0838

EUR/CHF chart - Trading View 

EUR/CHF slumps over 0.50% on the day, breaches 200-DMA support and tests 61.8% Fib at 1.0847.

The pair hit 5-month lows at 1.0838 before paring some losses to trade at 1.0852 at around 10:50 GMT.

Markets await ECB's release of Accounts from the latest meeting. Focus on Lagarde's conference on the results of the ECB strategy review. 

According to reports, the ECB policymakers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed.

Fresh COVID-19 jitters took its toll on the global risk sentiment and benefitted the safe-haven CHF. While euro depressed as markets remain skeptical about the ECB's ability to generate an inflation overshoot.

EUR/CHF technical bias turns strongly bearish on break below 200-DMA. Bears eye channel base support at 1.0830. 

Momentum is bearish, Chikou span is biased lower, MACD shows bearish crossover on signal line, ADX also supports weakness.

Price action has tested 61.8% Fib, violation at channel base support will plummet prices. Next bear target lies at 76.4% Fib at 1.0776.