FxWirePro: EUR/CHF finds strong support at 55-EMA, break below could see weakness

EUR/CHF chart on Trading View used for analysis

• EUR/CHF holds support at 55-EMA at 1.1395, we see weakness on break below.
   
• The pair is extending sideways grind after breaking major trendline resistance.
   
• Price action rages in daily cloud and breakout above could see further gains.
   
• Technical indicators support upside in the pair. Price has broken above 23.6% Fib.
   
• We evidence bullish divergence on RSI and Stochs which keeps scope for upside.
   
• Cloud top is immediate resistance, break above eyes 200-DMA at 1.16.
   
• On the flip side retrace below cloud will see test of trendline support at 1.1360.

Support levels - 1.1395 (55-EMA), 1.1378 (23.6% Fib), 1.1360 (trendline), 1.1281 (Sept 28 low)

Resistance levels - 1.1476 (cloud top), 1.1498 (38.2% Fib), 1.1600 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CHF-struggles-at-21-EMA-break-above-to-see-further-upside-1426705) is approaching final targets.

Recommendation: Book partial profits, trail SL to 1.1360, hold for targets.

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