EUR/CHF dropped in the morning as much as 1.1366 level and resumed the bearish movement, but failed to stay there and now is fighting hard to recover and to retest some resistance levels. Is still under somehow selling pressure on the daily chart despite the current rebound.

Could retest the broken support levels (support turned into resistance) and could drop much deeper in the upcoming period. The Euro increased even if the Euro-zone data have come in mixed.

Technically, the EUR/CHF is somehow expected to drop much deeper after the failure to approach and reach the 1.1410 previous high.

The Swiss Franc has lost some ground versus the Euro after the poor Switzerland data, the CPI increased by 0.0%, matching expectations, but unfortunately, the GDP increased only by 0.3% in the second quarter, less versus the 0.5% estimate. We’ll see what the Euro-zone Retail Sales and the Revised GDP will bring later, the retail sales could drop by 0.2% in July, while the GDP is expected to increase by 0.6%, the same like in the former reading period.

Euro increased in the last hours, even if the Final Services PMI dropped from 54.9 to 54.7 points, signaling that the expansion has slowed down, the French, Italian and the Spanish Services PMI have disappointed because have come in worse than expected.

Price is somehow expected to drop much deeper after the failure to stabilize above the WL4. Has found temporary support and now is retesting the second warning line (WL2) of the blue ascending pitchfork. Could retest also the WL4, a rejection from here will confirm a drop also below the upper median line (uml) of the minor ascending pitchfork.

A valid breakdown below the upper median line (uml) will open the door for more declines towards the median line (ml) of the minor ascending pitchfork.

I want to remind you that a further increase will appear only after a valid breakout above the WL4. We may have a minor consolidation on the short term before we’ll have a clear direction.