EUR/CHF Price Analysis: Downside favored after Monday’s bearish inverted hammer

The path of least resistance for EUR/CHF appears to be on the downside. On Monday, the pair faced rejection at 1.0793 and ended with marginal losses a  |  11/08/2020 04:08
  • EUR/CHF looks south after creating an inverted hammer on Monday. 
  • The pair risks falling to the immediate support located at 1.0712.

The path of least resistance for EUR/CHF appears to be on the downside. 

On Monday, the pair faced rejection at 1.0793 and ended with marginal losses at 1.0746, forming an inverted bearish hammer candle and validating or confirming the buyer exhaustion signaled by the repeated bull failure at 1.0838 seen over the past two weeks. 

Put simply, Monday’s inverted hammer has titled the bias in favor of the bears, opening the doors for a decline to the July 24 low of 1.0712. 

The daily chart slow stochastic indicator is also reporting bearish conditions with a below-50 print. 

A close above 1.0793 is needed to invalidate the bearish outlook. 

Daily chart

Trend: Bearish

Technical levels

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