EURCHF -

Bearish Breakout:
- The EUR/CHF is seen in the 1H chart breaking below a projected channel support. This suggests the risk aversion stemming from the eurozone debt crisis was not cleared by the EU summit last week. (The EUR/USD is rallying on the sole factor of USD-weakness)
- Note the market in the 1H chart was not able to push the RSI reading above 60 this time, and is now falling below 40, heading to 30. Bearish momentum is reviving in the short-term.
- The price level stayed below 200SMA after wavering around it, signaling a bearish takeover after a period of weak correction.
- This type of breakout is usually assessed with a swing projection, in this case to 1.13 (read on).
Bearish Targets:
- The 4H chart is analogous to the 1H chart in that the RSI failed to break above 60, and is now falling below 40. A break below 1.1518 would probably send the market back to the record low at 1.1405.
- The break of the channel in the 1H chart suggests a swing projection, which targets 1.1290-1.1300 area. This is also a 123.6% extended retracement of the correction rally from 1.1405 to 1.1890, AND is a fresh record low.