FxWirePro: EUR/CHF set to resume weakness after failure to break above 50-DMA, stay short on upticks

EUR/CHF chart - Trading View 

EUR/CHF has resumed weakness after failure at 50-DMA resistance in last week's trade.

The pair has slipped below 21-EMA and 5-DMA has also turned south.

GMMA indicator shows major trend in the pair has been bearish and minor trend has now turned bearish after brief neutral phase.

Stochs and RSI are biased lower, Stochastics RSI is biased lower and volatility is rising as evidenced by widening Bollinger bands.

Price action is currently hovering around 61.8% Fib at 1.0550 with scope for dips till new multi-year lows.

Technical indicators show strong bearish bias. 'Death cross' on the weekly charts to plummet prices further.

Data released earlier today showed dismal numbers from the services sector in the eurozone. Consultancy IHS Markit revised down its flash PMIs across the board as a consequence.

Italy services PMI fell to 17.4, from 52.1 in February, the lowest number Markit has ever reported for any of its PMIs.

The overall eurozone services PMI fell to 26.4, from 52.6. European indices slumped in the aftermath. 

Little support seen on the downside till 1.0280 (May 2015 low) ahead of 76.4% Fib at 1.0206.

5-DMA is immediate resistance at 1.0575. Break above 50-DMA (1.0623) could change near-term dynamics.

Support levels - 1.0523 (Mar 20 low), 1.0280 (May 2015 low), 1.0206 (76.4% Fib)

Resistance levels - 1.0575 (5-DMA), 1.0588 (21-EMA), 1.0623 (50-DMA)

Guidance: Good to stay short on upticks around 1.0575/ 1.06, SL: 1.0650, TP: 1.0525/ 1.0465/ 1.04