- EUR/CHF bears waiting to pound on a break of support.
- A daily extension following a health correct could be on the cards.
EUR/CHF is being rejected at key resistance which opens prospects for a downside continuation.
The following is a top-down analysis that arrives at an optimum entry on the 4-hour chart to target a daily bearish extension.
The price has been rejected at the M-formation’s resistance and neckline. This offers prospects for a downside extension.
The price has reached the resistance in a 61.8% Fibonacci retracement level and would not be expected to melt to the downside given the price action.
The price still has some work to do below current support.
A break of the 20-moving average would likely engage sellers again and a restest of the old support would be expected to act as resistance, offering an optimal entry point.