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EURCHF: Set To Weaken Further On Trend Resumption

EURCHF – The cross remains biased to the downside with further declines envisaged having resumed its long term downtrend.This development leaves the cross targeting the 1.1400 level, its psycho level with a violation of that level calling for further weakness towards the 1.1300 and the 1.1200 levels, all representing its psycho levels. Both its daily and weekly RSI are bearish and pointing lower supporting this view. Alternatively, on any recovery higher, the 1.1722 level will be targeted with a turn above there allowing for further strength towards its Jun 26’2011 low at 1.1805. A reversal of roles as resistance is expected at this level thus turning the cross back lower in the direction of its long term downtrend. Further resistance stands at the 1.2345 level  and then the 1.2468 level, its Mar 24’2011 high. All in all, EURCHF remains biased to the downside as it looks to weaken further having resumed its long term weakness.