EUR/CHF resumes slide and breaks below 1.1700

• Swiss franc among top performers amid political risk in Italy.
• EUR/CHF resumes slide after short-lived recovery.

The EUR/CHF pair lost 85 pips from daily highs and broke below yesterday’s lows, falling under 1.1700. The decline took place amid a rally of the Swiss franc across the board amid Eurozone political risks.

Several weeks ago, a question around traders was when EUR/CHF would break above the famous 1.2000 area and now it appears to be how much can it fall.

During the last eight trading days it lost ground on seven. The main driver has been the political situation in Italy with the government agreement between the anti-establishment Five Star Movement and the far-right League.

Technical levels

EUR/CHF bottomed today at 1.1683, hitting the lowest level since April 26. As of writing it was trading at 1.1695, down 260 pips for the month and on its way for the fourth weekly decline in-a-row.

To the downside, support levels might be located at 1.1675, 1.1645 and 1.1595/1.1600. On the upside, resistance could be seen at 1.1705, followed by 1.1730 and 1.1770 (weekly high).