The EUR/CHF currency pair quotations in the second half of June overcame a key support area under 1.1182. Then the zone turned into a resistance.
As can be seen from the weekly chart below, last week’s quotes returned to the resistance area as a result of a correction. In result of the re-test a bearish pin bar was drawn.
The above mentioned correction is more visible on the 4-hour chart, where it is also possible to locate the potential end of the correction. In the second half of last week, the support was provided by the area at 1.1108. Breaking this zone would indicate the potential for further decreases in the direction of 1.1061.
Alternatively, breaking the maxima of last week’s pin bar would mean negating it. In such a scenario, the buyers could continue to test the resistance at 1.1182.
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