Following a pullback in the trend, the EUR/CHF looks to continue its long term downtrend.
After touching a new year low at 1.2700, the EUR/CHF climbed to a high of 1.3040, a level just below the current trend line. This trend line for the long term downtrend falls off of the November high. After a quick reversal at this level, the pair looks set to resume the downtrend.
Technicals show further declines for the EUR/CHF are expected as the both weekly and daily stochastics are falling. Yesterday’s solid close below the 1.2920 support also points to an extension of the downtrend.
Support in the downtrend comes in at yesterday’s low of 1.2825, followed by 1.2720 and 1.2700. On an extension of the downtrend the December low at 1.2400 would come into play.
Should the pair move higher, resistance is found at 1.2920, and further gains would test 1.3040 and a resistance zone where the 200-day moving average and the February high are found between 1.3140 and 1.3200.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
