EURCHF is retreating today, falling below both its 20- and 40-day simple moving averages (SMAs) as well as beneath the 23.6% Fibonacci retracement level of the downleg from 1.1710 to 1.1120 near 1.1260. The bigger picture still seems negative as the price has been developing in a descending channel since September 2018.
Short-term momentum oscillators concur, with the RSI already below 50 and pointing lower, and the stochastic is posting a bearish cross within the %K and %D lines in the daily timeframe.
Further declines could meet support near the 23-month low of 1.1120, defined by the low on June 3, with a downside break opening the door for the 1.1000 significant handle, taken from the inside swing top on May 2017. This could endorse the scenario for stronger bearish structure.
On the flipside, a rebound may stall near the neighborhood of 1.1260 – 1.1280. Close to that region is also the 40-day SMA currently at 1.1293 ahead of the 38.2% Fibonacci mark of 1.1345.
In brief, some further losses shouldn’t be ruled out in the immediate term, but as long as the price remains in the downward sloping channel, the broader outlook is negative.
