FxWirePro: EUR/CHF finds strong support at 1.1418, weakness only on break below

EUR/CHF chart on Trading View used for analysis

• EUR/CHF finds strong support at 1.1418 (converged 20-DMA and cloud), intraday bias bullish.
   
• The pair is trading 0.14% higher on the day at 1.1440 at the time of writing.
   
• Technical studies favour upside in the pair. Stochs are sharply higher and RSI is above 50 levels.
   
• The pair finds stiff resistance at 110-EMA at 1.1456. Upside was rejected at 110-EMA with spinning top formation on Friday's trade.
   
• Break above to see further gains. Scope then for test of 200-DMA at 1.1574.
   
• Euro subdued after reports signaled that the ECB considers new TLTRO. European politics and the potential for a more cautious ECB suggests risks skewed to the downside.
   
• Break below 1.1418 to see resumption of weakness. Scope for drag till 1.1375 (trendline).

Support levels - 1.1418 (converged 20-DMA and cloud top), 1.1375 (trendline)

Resistance levels - 1.1456 (110-EMA), 1.1574 (200-DMA)

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