EUR/CHF’s decline resumed by taken out 1.0688 last week. Initial bias stays on the downside this week for further decline. Fall from 1.0877 is seen as the third leg of the pattern from 1.0915. Deeper fall should be seen to 1.0602 support next. On the upside, break of 1.0747 resistance is needed to signal short term bottoming. Otherwise, outlook will stay bearish in case of recovery.

In the bigger picture, price actions from 1.0503 are still seen as a consolidation pattern. With 1.1059 cluster resistance (38.2% retracement of 1.2004 to 1.0503 at 1.1076) intact, the down trend from 1.2004 (2018 high) would still extend through 1.0503 low at a later stage. However, sustained break of 1.1059/76 will argue that rise from 1.0503 is starting a new up trend and would target 61.8% retracement at 1.1431 and above.

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