EUR/CHF has been in a downfall since September 17th, when it hit resistance at 1.0940. That said, the pair stopped temporarily near the 1.0702 zone, which provided strong support back between August 17th and 24th. Overall, EUR/CHF remains below the downside resistance line drawn from the high of March 4th, and thus, we would consider the medium-term outlook to be negative.
A clear break below 1.0702 could invite more bears into the game and perhaps pave the way towards the 1.0660 barrier, marked by the low of November 4th, 2020. If that hurdle is also broken, then we could see larger declines, perhaps towards the low of July 9th, 2020, at 1.0595.
Taking a look at our daily oscillators, we see that the RSI lies slightly above 30 and points down, while the MACD runs below both its zero and trigger lines, pointing south as well. Both indicators detect strong downside speed and support the notion for further declines in this exchange rate.
On the upside, we would like to see a strong recovery back above 1.0940, before we start examining whether the bulls have gained the upper hand. This may also confirm the break above the downside line taken from the high of March 4th, and may initially target the 1.0985 barrier, marked by the high of July 1st, or the 1.1030 zone, marked by the high of September 19th. If the bulls are not willing to stop there, then we could see them climbing towards the peak of April 1st, at 1.1120.
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