The Euro has weakened against the Swiss Franc between early May to late June as a result of the CHF strength, trading down by nearly 3% and hitting a 23-month low of 1.1056 on 20th June.
On the daily time frame, EUR/CHF has been trading below the downtrend line resistance (the black line) over the past two months. Nevertheless, we have seen some rebound in the currency pair recently. The bulls have tested the bearish resistance several times in an attempt to make a breakout.
The bulls tested the bearish resistance on 2nd July, however, ending up with a pullback. The bulls have regained momentum and tested the resistance again this week. As of writing, the currency pair is flirting with the bearish resistance.
If the resistance is successfully broken, the bulls will likely keep on marching and test the next resistance level at 1.1170 (the blue dashed line) where the previous high from 2nd July situates.
Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg
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