FxWirePro: EUR/CHF finds strong support at 55-EMA, 'bearish divergence' keeps scope for weakness

EUR/CHF chart on Trading View used for analysis

• EUR/CHF is trading in a narrow range, with session high at 1.1427 and low at 1.1400.
   
• The pair has failed to extend break above daily cloud and is extending grind lower.
   
• Price action finds strong support at 55-EMA at 1.1407, break below will see further weakness.
   
• We evidence 'bearish divergence' on Stochs which keeps scope for downside.
   
• MACD is also on verge of a bearish crossover on signal line, which if completed will add to the bearish bias.
   
• Break below 55-EMA will see test of lower Bollinger Band at 1.1343 ahead of 1.1255 (Sept 21 low).

Support levels - 1.1407 (55-EMA), 1.1343 (lower BB), 1.1255 (Sept 21 low)

Resistance levels - 1.1429 (5-DMA), 1.1466 (110-EMA)

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