EUR/CHF formed a short term bottom at 1.0962 last week, after hitting 61.8% projection of 1.2004 to 1.1173 from 1.1476 at 1.0962. Initial bias remains neutral this week for more consolidations first. In case of stronger recovery, upside should be limited by 1.1172 resistance to bring down trend resumption. On the downside, sustained break of 1.0962 will extend the fall from 1.2004 to 100% projection at 1.0645 next.
In the bigger picture, current development firstly suggests that down trend from 1.2004 is still in progress. More importantly, it’s likely a long term down trend itself, rather than a correction. Outlook will remain bearish as long as 1.1476 resistance holds. EUR/CHF could target 1.0629 support and below.
