EUR/CHF Price Analysis: Potential H&S formation below 1.0655
|- EUR/CHF recovery attempt from 1.0645, capped below 1.0730.
- The pair is risking to activate a Head and Shoulders formation below 1.0650/55.
The euro’s recovery from last week's lows at 1.0645 has lost steam above 1.0700, and the pair has remained moving without a clear direction on Monday, limited below 1.0730. The common currency has opened the week on a soft note, weighed by the negative market sentiment on the back of increasing concerns about a second wave of coronavirus infections.
The euro dangerously close to key support at 1.0655
The four-hour charts show the pair capped below 1.0730 moving about 50 pips above key support at 1.0650/55, the neckline of a Head and Shoulders formation shaped in the last three weeks (view image), this level is also the 61.8% Fibonacci retracement of the May-June rally. Below here, the pair might gain bearish momentum, heading towards May 20 and 15 lows at 1.0580 Before early May lows at 1.0505.
On the upside, the pair should extend its current recovery above the mentioned 1.0730 high (intra-day high, May 29 high) before aiming towards 10790/00 (June 10 high, Intra-day level) and then June 9 high at 1.0828).
EUR/CHF 4-hour chart
EUR/CHF key levels to watch
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