FxWirePro: EUR/CHF breaks below 110W EMA, 200-DMA at 1.0870 in sight

EUR/CHF chart - Trading View 

Technical Analysis: Bias Bearish

GMMA Indicator

- GMMA shows minor trend is strongly bearish, while major trend is turning bearish on the daily charts

- On the weekly charts, major trend is neutral, while minor trend is turning bearish

Ichimoku Analysis

- Price action is below the daily Ichimoku cloud and Chikou span is biased lower

Oscillators

- Stochs and RSI are sharply lower on the daily and weekly charts

- RSI is well below the 50 mark, suggesting strong downside support

Bollinger Bands

- Bollinger bands are widening on the daily charts suggesting rising volatility

- On the weekly charts also, the spread between the upper and lower Bollinger bands remains high

Fundamental Overview: Macro economic fundamentals are yet to justify the sustained eurozone recovery from a pandemic. The ECB today is expected to keep the benchmark rate unchanged at 0.0%. Further, the Deposit Rate is likely to remain at -0.5% and the bond purchases are also likely to be kept intact. 

ECB releases its decision at 11:45 GMT. The central bank is expected to keep the benchmark rate unchanged at 0.0%. Further, the Deposit Rate is likely to remain at -0.5% and the bond purchases are also likely to be kept intact. 

Macro economic fundamentals are yet to justify the sustained eurozone recovery from a pandemic. Focus remains on the bank's economic outlook. It should, however, be noted that the economic projections need to confirm ECB President Christine Lagarde’s optimism to favor the common currency.

Major Support Levels: 1.0870 (200-DMA), 1.0847 (61.8% Fib), 1.08

Major Resistance Levels: 1.0920 (5-DMA), 1.0951 (200H MA), 1.0964 (55-EMA)

Summary: EUR/CHF trades with a bearish technical bias. ECB policy meeting and the bank's outlook for the economy could influence direction. Bears target 200-DMA at 1.0870. Breach below will open downside.