Daily Pivots: (S1) 1.1510; (P) 1.1538; (R1) 1.1570; More….
EUR/CHF surges to as high as 1.1639 so far today. The strong break of 38.2% retracement of 1.2004 to 1.1366 at 1.1610 suggests that decline from 1.2004 has completed at 1.1366 already. Intraday bias is now on the upside further rise to 61.8% retracement at 1.1760 and above. On the downside, break of 1.1505 support is needed to confirm completion of the rebound. Otherwise, further rally will remain mildly in favor even in case of retreat.
In the bigger picture, current development suggests solid rejection by prior SNB imposed floor at 1.2000. Considering bearish divergence condition in daily and weekly MACD, 1.2004 should be a medium term top. And price action from 1.2004 is correcting the up trend from 1.0629. Such correction is expected to extend for a while and therefore, we’re not anticipating a break of 1.2004 in near term. Another decline cannot be ruled out yet. But in that case, strong support should be seen at 1.1198 (2016 high), 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to contain downside.
