FxWirePro: EUR/CHF grinds lower for the 3rd straight week, extends consolidation below 200-DMA

EUR/CHF chart - Trading View 

Spot Analysis:

EUR/CHF erased early gains and was trading largely unchanged at 1.0849 at around 07:15 GMT.

Previous Week's High/ Low: 1.0946/ 1.0824

Previous Session's High/ Low: 1.0862/ 1.0844

Fundamental Overview:

The European Central Bank (ECB) planned to adopt a new strategy in its next meeting on July 22nd. 

The central bank announced last week that it would tolerate inflation higher than its 2% goal.

Analysts expect the ECB will start tapering its pandemic-related asset purchases after its September meeting and stop buying them by the end of March.

The single currency gains on optimism after ECB hawkish outlook. Markets await German Harmonised Index of Consumer prices for impetus.

Technical Analysis:

- Price action is extending sideways grind for the 3rd straight session

- The pair is consolidating below 200-DMA, upside remains capped at 5-DMA

- Momentum is bearish, stochs and RSI is biased lower and RSI is below 50 mark

- The pair has paused downside at channel base support, breach below will plummet prices

- MACD and ADX support weakness in the pair

Major Support and Resistance Levels:

Support - 1.0825 (Channel base), 1.08, 1.0776 (76.4% Fib)

Resistance - 1.0859 (5-DMA), 1.0885 (200-DMA), 1.0907 (200H MA)

Summary: EUR/CHF trades with a bearish bias. Price action is extending consolidation below 200-DMA. Retrace above 5-DMA will see some upside. Breach below channel base will drag the pair lower.