Daily Pivots: (S1) 1.1721; (P) 1.1743; (R1) 1.1781; More…
A temporary low is formed at 1.1705 in EUR/CHF with the current recovery. Intraday bias is turned neutral for consolidations. Upside of recovery should be limited by 1.1864 support turned resistance to bring another decline. Below 1.1705 will target 61.8% retracement of 1.1445 to 1.2004 at 1.1659. Sustained break will target key support level at 1.1445.
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 correcting 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.
