Daily Pivots: (S1) 1.1673; (P) 1.1696; (R1) 1.1738; More…
Further rise could be seen in EUR/CHF in near term. But based on weak upside momentum, we’d expect strong resistance well below 1.2 handle to bring medium term topping. On the downside, break of 1.1602 support will indicate reversal and turn outlook bearish for 1.1387 and below.
In the bigger picture, while a medium term top could be around the corner, there is no change in the larger outlook. That is, long term rise from SNB spike low back in 2015 is still in progress and would extend. As long as 1.1198 resistance turned support holds, we’ll hold on to this bullish view and expect another to prior SNB imposed floor at 1.2000. Though, we’ll reassess the outlook if 1.1198 is firmly taken out.
