Daily Pivots: (S1) 1.0703; (P) 1.0721; (R1) 1.0734; More….
EUR/CHF drops to as low as 1.0678 so far. Break of 1.0694 support confirms resumption of whole decline from 1.1149. Intraday bias stays on the downside for 61.8% projection of 1.1149 to 1.0694 from 1.0936 at 1.0655. Sustained break there will pave the way towards 100% projection at 1.0481. On the upside, break of 1.0750 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, the rejection by 55 week EMA maintains medium term bearishness. Fall from 1.1149 (2021 high) is currently seen as the second leg of the patter from 1.0505 (2020 low) first. Hence, in case of deeper fall, we’d look for strong support from 1.0505 to bring rebound. However, sustained break of 1.0505 will resume the long term down trend from 1.2004 (2018 high). Also, medium term outlook will now be neutral at best as long as 1.0936 resistance holds.
