The EUR/CHF dropped significantly today and has resumed the yesterday’s bearish candle, has managed to erase all the Tuesday’s gains and could try to fill the Monday’s gap. Has touched a major dynamic resistance  and wasn’t able to close above this level, signalling that we may have another leg lower, the bears have taken the lead again.

The European currency is depreciating versus all it’s rivals after the ECB Press Conference, as you already know, the European Central Bank has maintained the Minimum Bid Rate unchanged at the historical minimum (0.00%).

The Euro has also dropped  because the Euro-zone data have failed to impress today, on the other hand, the CHF has received a strong support from the Switzerland Trade Balance, the trade surplus has decreased from 3.12B to 3.10B in March, has come in better versus the 3.01B estimate and has lifted the Franc. The Euro has taken a hit from the Spanish Unemployment Rate, which has increased unexpectedly, from 18.6% to 18.8%, even if the specialists have expected to see the rate steady at 18.6%. Moreover the German Prelim CPI increased by 0.0%, more versus the -0.1% estimate, while the Gfk German Consumer Climate increased from 9.8 to 10.2 points, beating the 9.9 prediction.

Has found strong resistance at the sliding line (ascending dotted line) again  and now is going down, could try to close the immense gap up, but personally I don’t believe that will drop so much, maybe will come down to retest the median line (ML) of the major descending pitchfork and also the lower median line (lml) of the ascending pitchfork before will increase and will resume the rebound.

I’ve said in my previous analysis that we may have a Falling Wedge pattern here, you can see that the rate has escaped from this pattern, so we need a confirmation now.

The major upside target remains at the upper median line (UML) of the major descending pitchfork, could still approach and reach this level as long as is trading within the ascending pitchfork’s body.