EUR/CHF quotes have been struggling with resistance around 1,1340 since November last year. Previously, the area within this level acted as a support.
As can be seen in the daily chart below, the price tested the resistance again this week, and today, after reading the PMI from the euro area countries, a clear slump can be seen.
On the other hand, after switching to a 4-hour chart, we can see that the decline in EURCHF quotations has stopped at the support of the upward trend line running from this year’s minima. The result of the LT test in progress remains unknown.
Successful breaking the trend line would open the way for a decline in the direction of 1,1240 – 1,1221, where the first important support area is located. The next one is close to this year’s minima at 1,1182.
Alternatively, in case of a rebound in the natural direction of the movement, the resistance will be around 1,1340, which stops all buyer’s progress this year.
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