FxWirePro: EUR/CHF breaks strong trendline support at 1.1390, intraday bias lower

EUR/CHF chart on Trading View used for analysis

• EUR/CHF closes bearish gap open to trade at 1.1389 at the time of writing.
   
• The pair has slipped below major moving averages and dipped into daily cloud.
   
• Momentum studies are bearish and RSI is below 50 levels. We see scope for further weakness.
   
• Italy budget deadline looms Tuesday, where it is required to submit a revised budget draft to the EU.
   
• Italy-German yield spread looks set to rise in the EUR-negative manner as Italy is unlikely to revise lower its expansive budget deficit target.
   
• EUR/CHF rejected at stiff resistance at 110-EMA, breaks strong trendline support at 1.1390, eyes 1.1342 (cloud base and Oct 26 low).

Support levels - 1.1342 (cloud base and Oct 26 low), 1.13, 1.1281 (Sept 28 low)

Resistance levels - 1.14, 1.1424 (5-DMA), 1.1453 (110-EMA)

Recommendation: Stay short on upticks, SL: 1.1425, TP: 1.1340/ 1.13/ 1.1285

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.