EUR/CHF Daily Outlook

Daily Pivots: (S1) 1.4850; (P) 1.4895; (R1) 1.4927; More

Our view on EUR/CHF remains neutral for the moment as we're still waiting for confirmation on whether fall from 1.5880 is completed at 1.4657 after missing 78.6% retracement of 1.4315 to 1.5880 at 1.4650. Some more choppy sideway trading might still be seen between 1.4657 and 1.5191 before clearing out the picture. In any case, a break of 1.5191 will revive the case the fall from 1.5880 has completed and bring rally to retest this high. Meanwhile, break of 1.4650/57 will confirm that fall from 1.5880 is still in progress.

In the bigger picture, outlook in EUR/CHF remains mixed for the moment even though we're favoring the case that fall from 1.5880 has completed at 1.4657, above 1.4315. We're also favoring the case that whole decline from 1.6827 has completed with three wave down to 1.4315 too. The corrective nature suggests that it's possibly part of a large range sideway pattern between 1.4135 and 1.6827. Further break of 1.5880 will add much credence to this case and bring rally to 1.6368 and then 1.6827.

On the downside, note that so far, EUR/CHF is still maintaining a pattern of lower highs and lower lows since 1.6827 and the cross is still trading well below 55 days and 55 weeks EMA. Below 1.4657 near term support will firstly indicate that fall from 1.5880 is still force. It will also argue that down trend from 1.6827 is still in progress for at least another test of 1.4315 before completion.

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