Daily Pivots: (S1) 1.1775; (P) 1.1818; (R1) 1.1866; More…
EUR/CHF recovers after hitting 38.2% retracement of 1.1445 to 1.2004 at 1.1790. But with 1.1864 support turned resistance intact, deeper fall is expected. Sustained trading below 1.1790 will pave the way to 61.8% retracement at 1.1659 and below. Nonetheless, break of 1.1864 will indicate short term bottoming and turn bias back to the upside for stronger rebound.
In the bigger picture, current development suggests solid rejection by prior SNB imposed floor at 1.2000. Considering bearish divergence condition in daily MACD, 1.2004 could be a medium term top. And price action from 1.2004 is corrective the up trend from 1.0629. Hence, for now, deeper fall could be seen back to 1.1445, which is close to 38.2% retracement of 1.0629 to 1.2004 at 1.1479. We’d expect strong support from there to bring rebound to extend the medium term corrective pattern.
