A case for the EUR/CHF

Note: EUR/CHF is currently trading in a channel. It has also broken a trendline to the downside. On the weekly chart, it looks like its forming a head and shoulders pattern. If it breaks the channel to the upside, it still has to deal with 2 resistance lines and the trendline. It may go as far as the second resistance line at 1.09878, but ultimately it is likely to head down. The RSI is also heading to an overbought state. With weak EUR and strong CHF, EUR/CHF may head down to at least 1.06968 ( which is the next support line).