Since mid-July, EURCHF has been in a downward trend, which is clearly visible at the four-hour interval. The price is slowly moving south, the first major goal is around 1.1450, where there is important support from the daily chart. However, there is still around 120 pips to reach these levels.
Let’s first look at the wider sentiment. Price EURCHF at the turn of April and May was around 1.20, a famous barrier that was supposed to hold the maximum franc value, and which was abolished by the SNB in January 2015, which led to chaos in the markets. In mid-May there was a sharp decline in the value of the euro, the price was at the support mentioned at 1.1450. All subsequent rebound may be treated as an upward correction of earlier rapid depreciation.
Returning, however, to the present, the price bounced from the level 1.17 and from then on it is slowly wandering south. As you can see in the chart, you can draw a downtrend line. When the price will approach it, we will be able to think about opening a short position with the goal at support. This happened yesterday, and you can still use it.
