Daily Pivots: (S1) 1.1341; (P) 1.1369; (R1) 1.1416; More…
EUR/CHF retreats mildly after hitting 4 hour 55 EMA. But for now, rebound from 1.1242 short term bottom is still expected to continue for 1.1489 support turned resistance. Firm break there will add some credence in near term reversal ahead of key support zone between 1.1154/98. Nonetheless, break of 1.1242 will extend the larger corrective fall from 1.2004. But in that case, 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.
