EUR/CHF dropped to 1.1242 last week but rebounded from there since then. A short term bottom should be in place, ahead of key support zone between 1.1154/98. Initial bias is back on the upside this week for 1.1489 support turned resistance first. Firm break there will add some credence in near term reversal and target 1.1713 resistance next. Fall from 1.2004 is viewed as a correction. Hence, in case of another decline, we’d expect strong support between 1.1154/98 to contain downside and bring reversal.
In the bigger picture, for now, the price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by 1.1198 (2016 high), 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1173) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend.
