© Dukascopy Bank SA
After hitting the support at 1.2163 EUR/CHF was able to commence a recovery, which later on developed into an upward-sloping channel. At the moment, however, the downside risks prevail, being that the currency pair is facing a cluster of resistances, created by the weekly R1, up-trend line and May 2 high.
Consequently, there is a high probability of a sell-off down to 1.2189, where the lower boundary of the pattern merges with the weekly PP and 200-hour SMA and may revive the rally. At the same time the sentiment of the market towards the rate is explicitly bullish—70% of open positions are to benefit from Euro's appreciation.
© Dukascopy Bank SA