EUR/CHF created an aggressive upside spike on Monday, after the bounce off the 40-simple moving average (SMA) in the daily timeframe and on the 23.6% Fibonacci retracement level of the downward movement from 1.1710 to 1.1180, around 1.1305. Currently, the pair is consolidating within a sideways channel with upper boundary the 1.1470 level and lower boundary the 1.1180 support.
Technically, the RSI indicator is sloping upwards in the positive zone, while the stochastic oscillator is ready to post a bullish crossover within the %K and %D lines.
If 1.1305 support fails, then the focus would shift to the downside towards 1.1240, which if breached, would increase downside pressure and hit the 1.1180 strong support level.
Overall, if the pair penetrates the consolidation area to the downside, it would confirm the long-term bearish structure, while a jump above 61.8% Fibonacci would switch the outlook to bullish.
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