EUR/CHF drops below 1.0770 to one-month lows

• Swiss franc among top performers on Tuesday gains even against the US dollar.
• EUR/CHF extends downside as no Brexit deal is seen, ahead of ECB meeting.

The EUR/CHF pair is trading at the lowest level in a month, under 1.0770. It is falling for the fifth consecutive day, as it continues to retreat after testing earlier in December monthly highs near 1.0870.

The decline is being driven by a stronger Swiss franc. The currency is up across the board. While majors trade sideways, USD/CHF moves with a negative trend.

The appreciation of the franc takes places as the European Union and the United Kingdom continue negotiating for a trade deal and ahead of Thursday’s European Central Bank meeting. The central bank is expected to introduce more stimulus measures.

From a technical perspective, the EUR/CHF is correcting lower with the negative tone intensifying as it holds below the 1.0775/80 area. It is hovering around the 100-day moving average. The next support stands around 1.0730/35. A recovery above 1.0790 would alleviate the bearish pressure. The next resistance is seen at 1.0825/30.

Technical levels to watch