Following a pullback in the trend , the EUR/CHF looks to continue its long term downtrend.
After touching a new year low at 1.2700, the EUR/CHF climbed to a high of 1.3040, a level just below the current trend line. This trend line for the long term downtrend falls off of the November high. After a quick reversal at this level, the pair looks set to resume the downtrend .
Technicals show further declines for the EUR/CHF are expected as the both weekly and daily stochastics are falling. Yesterday's solid close below the 1.2920 support also points to an extension of the downtrend.
Support in the downtrend comes in at yesterday's low of 1.2825, followed by 1.2720 and 1.2700. On an extension of the downtrend the December low at 1.2400 would come into play.
Should the pair move higher, resistance is found at 1.2920, and further gains would test 1.3040 and a resistance zone where the 200-day moving average and the February high are found between 1.3140 and 1.3200.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.