Risk aversion lifts safe-haven Swiss franc to a seven-month high vs Euro
The EURCHF cross was among top losers in early Thursday’s trading, being down 0.7% so far, as fresh risk aversion strongly lifted safe-haven Swiss franc.
Bears took out strong technical supports at 1.0886/70 (200DMA / June 11 former low) and probed through pivotal Fibo support at 1.0844 (61.8% of 1.0654/1.1151 advance), pressuring the lower boundary of bear channel (1.0828) from 2021 high at 1.1151 (Mar 4).
Fresh weakness signals continuation of larger downtrend, which could accelerate further on break of channel trendline support.
Bears see close below 1.0870 as a minimum requirement to remain intact, while clear break of 1.0844 Fibo level would boost bearish signal.
Daily moving averages turned to full bearish setup, while negative momentum rises sharply, supporting the action.
Bearish weekly studies signal more room for descend.
However, overextended daily techs suggest bears may take a breather before resuming, with extended upticks to stay capped under 200DMA (now reverted to solid resistance) and provide better opportunities to re-join the downtrend.
Res: 1.0870; 1.0886; 1.0920; 1.0927
Sup: 1.0828; 1.0810; 1.0784; 1.0738