EUR/CHF has seen a test of the 1.2000/1.2040 support zone but early signs of basing have been noted. • While short-term activity could remain subdued the overall tone remains negative after the failure to sustain the break above resistance at 1.2127 and while 1.2100/1.2127 caps, we see risk of an attack on 1.2000/1.2040, below which could then see an acceleration of the major downtrend towards 1.1500. • Settlement above the 1.2100-1.2127 zone would suggest base pattern completion calling for a return to broken support at 1.2226, above which would turn the focus to the 1.2474 swing high. (full story)