EUR/CHF edged higher to 1.1348 last week but failed to take out 55 day EMA firmly and retreated. Intraday bias remains neutral at this point first. We’re holding on to the view of short term bottoming at 1.1224, on bullish convergence condition in 4 hour MACD. Thus, current retreat should be contained well above 1.1224 low and further rally is favored. On the upside, break above 1.1348/1356 resistance zone will affirm this bullish view. Intraday bias will be turned back to term upside for retesting 1.1501 resistance.
In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. 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. In that case, 1.0629 key support will be back into focus.
