EUR/CHF Weekly Outlook

EUR/CHF continued to trade inside tight range last week without any direction. The near term outlook remains neutral for the moment. While deeper decline could be seen as the consolidation continues, downside is expected to be contained by SNB's 1.2 floor and bring recovery. On the upside, breach of 1.2034 could be seen on sudden volatility. But we're need to see a break of 1.205 before confirming sustainable buying. Otherwise, above 1.2034 is indeed a near term sell zone.

In the long term picture, after SNB intervention, the long term down trend in EUR/CHF is put into a halt at 1.0061. While the whole rebound from 1.0061 was strong, there is no scope of trend reversal yet. And, we'd expect strong resistance inside 1.2399/3243 resistance zone to limit upside unless there is a drastic turn in risk sentiments. But in any case, downside should be contained by 1.2, the floor set by SNB.

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