EUR/CHF surged to as high as 1.0869 last week and formed a temporary top there. It then turned into sideway consolidation. The firm break of 1.0823 is taken as a signal of larger reversal. Hence, further rally is expected in near term to 1.0897 resistance next.
Initial bias in EUR/CHF is neutral this week for consolidation first. Downside of retreat should be contained by 1.0781 minor support and bring another rise. Above 1.0869 will target 1.0897 resistance next. Decisive break there should confirm our bullish view of reversal. However, break of 1.0781 will bring deeper fall back towards 1.0652 support instead.
In the bigger picture, the price actions from 1.1198 are seen as a corrective move. Current strong rebound is raising the chance that it’s completed after defending 38.2% retracement of 0.9771 to 1.1198 at 1.0653. Decisive break of 1.0999 resistance will target a test on 1.1198 high. For now, this will be the preferred case as long as 1.0652 support holds.
