EUR/CHF continues to trade under the 200-day moving average
And as long as price stays below the level (blue line) @ 1.1653, the fresh bearish sentiment remains intact and sellers remain in control of the pair.
Yesterday's fall saw buyers defend the 76.4 retracement level @ 1.1579 with the low posted overnight being at 1.1581. But the key was that sellers managed a daily close below the 200-day MA. That opens up a fresh bearish sentiment in the pair and the key now is to hold below it.
That will allow further conviction for a move towards a test of 1.1600 again and the 1.1579 level. As for buyers, the first step is to reclaim a daily close above the 200-day MA.
The swissie has benefited from the risk-off tone in markets as well as the exit from Italian assets, so those two will still be key drivers in the pair for the time being. Meanwhile, euro sentiment remains weak and though the euro may be stronger against the dollar today the momentum is still with sellers driving a weaker euro at the moment.
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