The EUR/CHF has been on a one-way journey over recent weeks, with the pair falling to its lowest trading level since April 2017.
EUR/CHF technical analysis shows that the pair could fall towards the 1.0650 support level before staging a meaningful upside recovery.
EUR/CHF medium-term price trend
EUR/CHF technical analysis shows that the pair remains technically bearish over the medium term while trading below the 1.1000 level.
Weakness in the euro currency and continued strength in the Swiss franc has seen the pair testing towards the 1.0700 support region.
The daily time shows that the EUR/CHF pair has been trapped within a falling price channel since last year. Price is now approaching the bottom of the channel, around the 1.0650 level.
Technical analysis on the daily time frame shows that a bearish death-cross is also underway, with bulls needing to rally the price above 1.0800 to negate the bearish trading signal.
The EUR/CHF pair still appears vulnerable to further downside attacks and is likely to be sold on any rallies towards the 1.0800 level.
EUR/CHF short-term price trend
EUR/CHF technical analysis shows that the pair is technically bearish while trading under the 1.0860 level.
A bullish inverted head-and-shoulders pattern has recently been invalidated on the lower time frames, which is extremely negative for the pair in the short term.
The pattern was invalidated once the price broke below the 1.0860 level in late-December. The invalidation of the bullish pattern has been costly for the EUR/CHF and subsequently caused the pair to slump to multi-year lows.
The overall downside projection of the invalidated inverted head-and-shoulders pattern would take the EUR/CHF pair towards 1.0660.
It is certainly noteworthy that short- and medium-term analysis are in alignment, and both highlight the 1.0650 to 1.0650 level as an upcoming bearish target.
EUR/CHF technical summary
EUR/CHF analysis suggests that a decline towards the 1.0650 support level appears to be the most likely scenario. Both short and medium-term analysis are in alignment.