EUR/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.4703; (P) 1.4728; (R1) 1.4745; More

Break of 1.4701 support suggests that recovery from 1.4635 is already completed. Intraday bias is flipped back to the downside. Break of 1.4635 will bring decline resumption towards next key support level at 1.4577. On the upside, above 1.4579 will bring another round of rebound to 1.4808 resistance and above. Nevertheless, we'd still expect strong resistance near to 1.5007 support turned resistance and bring fall resumption.

In the bigger picture, with EUR/CHF still staying well below 55 weeks EMA, fall from 1.5880 is likely still in progress. Current decline should have a test on 1.4577 support first and break will target 2008 low of 1.4315. On the upside, break of 1.5007 support turned resistance is needed be the first signal to indicate that fall from 1.5446 has finished. Otherwise, medium term outlook will remain bearish.

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