EUR/CHF’s down trend resumed last week and dropped sharply to as low as 1.1056. As a temporary low was formed, initial bias is neutral this week for some consolidation first. Upside could recovery should be limited below 1.1264 resistance to bring another decline. On the downside, break of 1.1056 will resume decline to 61.8% projection of 1.2004 to 1.1173 from 1.1476 at 1.0962 next.
In the bigger picture, current development firstly suggests that down trend from 1.2004 is still in progress. More importantly, it’s likely a long term down trend itself, rather than a correction. Outlook will remain bearish as long as 1.1476 resistance holds. EUR/CHF could target 1.0629 support and below.
