EUR/CHF stays in range of 1.0683/0823 last week and outlook is unchanged. With 1.0683 minor support intact, we’d slightly favoring the case of trend reversal on bullish convergence condition in daily MACD. But such view is dampened by prior rejection from the falling 55 week EMA.
Initial bias in EUR/CHF remains neutral this week first. Further rise is expected as long as 1.0683 minor support holds. Above 1.0761 minor resistance will turn bias to the upside for 1.0823 resistance first. Break will re-affirm the case of trend reversal and target 1.0897 resistance next. However, firm break of 1.0683 minor support will turn bias to the downside for 1.0620 key support level again.
In the bigger picture, the decline from 1.1198 is seen as a corrective move. Decisive break of 1.0897 resistance should confirm that it’s completed. And in that case, larger up trend is resuming for another high above 1.1198. Meanwhile, sustained trading below 38.2% retracement of 0.9771 to 1.1198 at 1.0653 will target 50% retracement at 1.0485.
