- EUR/CHF price action poised for more downside pressure.
- Decisive reversal pattern spotted on Monday.
- Immediate danger for a retest of the key support level found at 1.0712.
EUR/CHF exchange rate can fall more in the face of no real technical support.
During the first trading day of the week, the pair ended slightly in negative territory closing at 1.0746 but not before to reach a high of 1.0793. EUR/CHF ended up forming a traditional reversal pattern confirming the lack of buyers indicated by the frequent rejection of the resistance level 1.0838.
Based on Monday’s price action the bears should take control of the pair. Short-term EUR/CHF bears have an opportunity to challenge again the July 24 low of 1.0712.
The bearish bias is also confirmed by the daily stochastic indicator which crossed the 50 levels.
The sellers can lose control in favor of buyers if the pair manages to break and close above the resistance level 1.0793.