The EUR/CHF exchange rate has recently fallen to the key support level at 1.1182. Moreover, the prices in March have even closed under that level.

As you can see in the EUR/CHF weekly chart below, the exchange rate returned over 1.1182 at the end of last week. However, quotes remained trapped in the previous week’s trading range, which led to the creation of the formation of an inside bar.

EURCHF Weekly

If the inside bar is broken down, sellers will have a chance to continue the downward trend. The key support for this scenario is around 1.10.

A breakout thru the top would not give a good opportunity for trading due to the close presence of horizontal resistance at 1.1306 and the medium channel EMA 10/20, which is a dynamic resistance.

Join us in our Price Action Patterns group for serious traders, get fresh analyses and educational stuff here: https://www.facebook.com/groups/328412937935363/

Leave us a comment!

Ransquawk