Technical analysis of the currency pair EUR / CHF on 20/12/2016. The daily chart
General analysis
On Monday 19/12/16 currency pair EUR / CHF continued its decline by forming big dark candle with a decrease by 50 points. Also, according to the results of yesterday's session the support level 1.0700.
has been broken. Price was able to pass this mark and consolidate below the support level.
We are not expected major news from the Eurozone today so that the news background will be unusually quiet.
The graph of Stochastic indicator shows the convergence of the signal lines in the overbought zone.
Next few days
Break of the support level 1.0700 and fixing prices below indicates potential sales for EUR / CHF.
However, given the propensity of this currency pair to form false breakouts and the mixed signals from the indicator we can conclude that the opening of sale should be made only after receiving confirmation of the breakdown and fixing of the price below support at least with two candles.
The immediate goal to capture profits on sales below 1.0700 will be the level 1.0630.
