EUR/CHF Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	Doji star	03 May 2009	Sideways
Daily	N/A	N/A	Sideways

The single currency finally resumed recent decline as suggested and broke below support at 1.4551, indicating decline from 1.5880 is still in progress and weakness to 1.4400 would be seen, however, break of 2009 low of 1.4300 is needed to confirm medium term downtrend from 1.6828 top has resumed and extend weakness to 1.4145 (100% projection of 1.5880 to 1.4577 measuring from 1.5448) but reckon psychological support at 1.4000 would remain intact.

On the upside, although minor recovery to 1.4551 (previous support turned resistance) is likely, renewed selling interest should emerge around the Tenkan-Sen (now at 1.4641) and bring such a decline to aforesaid downside targets. Only a weekly close above the Tenkan-Sen would suggest a temporary low is possibly formed and risk retracement to the Kijun-Sen (now at 1.4857) before prospect of another selloff.

Based on ActionForex.com Technical Outlook