FxWirePro: EUR/CHF consolidates previous session's slump, inches closer towards 200-DMA

EUR/CHF chart - Trading View 

Spot Analysis:

EUR/CHF was trading rangebound at 1.0892 at around 04:10 GMT, consolidates previous session's slump.

Previous Session's High/ Low: 1.0926/ 1.0888

Previous Week's High/ Low: 1.002/ 1.0934

Fundamental Overview:

The European Central Bank (EBC) on Thursday, left its cash rates unchanged, despite the higher economic projections. 

ECB President Christine Lagarde reaffirmed that the central bank is committed to its bond purchasing program even at a higher rate than the previous one. 

The central bank for the first time since 2018, confirmed that the Eurozone economy is no longer overshadowed by risk to its growth outlook. 

Technical Analysis:

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

- Price action is below the daily Ichimoku cloud and Bollinger bands are widening on the daily charts suggesting rising volatility

- Stochs and RSI are sharply lower on the daily and weekly charts, RSI is well below the 50 mark, suggesting strong downside support

Major Support Levels: 1.0880 (Trendline and 55-week EMA), 1.0870 (200-DMA), 1.0847 (61.8% Fib)

Major Resistance Levels: 1.0909 (5-DMA), 1.0912 (110W EMA), 1.0946 (21-EMA)

Summary: EUR/CHF trades with a bearish technical bias. ECB policy decision failed to have any major impact. Bears on track to test 200-DMA at 1.0870. Breach below will open downside.