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FxWirePro: EUR/CHF consolidates break below cloud, outlook bearish

EUR/CHF chart - Trading View 

Technical Analysis: Bias Bearish

- Price action has broken below daily cloud

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

- Volatility is high as evidenced by widening Bollinger bands

- GMMA indicator shows major and minor trend are bearish

- MACD and ADX support downside in the pair

Fundamental Overview:

Final German Manufacturing PMI came at 56.2 (from 60.8) and the EMU’s gauge receded to 56.4. 

The euro area Producer Prices rose 1.1% MoM in August and 13.4% over the last twelve months.

Focus now on ECB Chairwoman Christine Lagarde's speech later in the European session

Support levels - 1.0705 (Trendline), 1.0692 (Lower week BB), 1.06

Resistance levels - 1.0778 (5-DMA), 1.08, 1.0814 (21-EMA)

Summary: EUR/CHF trades with a bearish technical bias. Upticks on account of any upbeat data can be used to accumulate short positions. Next bear target lies at 1.0705 (Major trendline).
 

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