FxWirePro: EUR/CHF fails to hold break above daily cloud, bearish divergence raises scope for downside

EUR/CHF chart on Trading View used for analysis

• EUR/CHF has been slipping lower from 2-month highs at 1.1492, bias bearish.
   
• The pair has failed to hold break above daily cloud, slips lower for the 2nd straight session.
   
• We see bearish divergence on Stochs which adds to the bearish bias.
   
• Further the pair has formed successive spinning top and doji formations at highs, raising scope for weakness.
   
• Price has dipped below 5-DMA and finds next major support at 21-EMA at 1.1386. Break below will see dip till 1.1345 (trendline).
   
• On the flip side, the pair has been rejected shy of 38.2% Fib, break above will see resumption of upside.

Support levels - 1.14 (55-EMA), 1.1385 (21-EMA), 1.1345 (trendline)

Resistance levels - 1.1469 (110-EMA), 1.1498 (38.2% Fib)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.