EURCHF is testing the lowest Fibonacci support with the help of extra dovish ECB. Lagarde and most of the ECB members spoke very dovish ahead of Thursday’s ECB meeting. Despite rising inflation, most of the members agree that the bottlenecks on the supply chain are the major reason for the inflation and it will be temporary. 

The %76.4 Fibonacci support is the key short-term support. A possible break to the downside may cause EURCHF to test 1.06 or even 1.0575 bottom. But the price is below 2 standard deviations from the 200-day moving average and for the last two years, whenever it falls that far below, a major short-term bullish run followed. It will be wise to be careful about short positions despite dovish ECB for a while.