Daily Pivots: (S1) 1.1215; (P) 1.1266; (R1) 1.1354; More…
EUR/CHF’s strong rally and break of 1.1319 minor resistance suggests short term bottoming at 1.1178. More importantly, considering bullish convergence in 4 hour and daily MACD too, EUR/CHF should have drawn strong support from 1.1154/98 and is reversing. Intraday bias is turned back to the upside. Decisive break of 1.1452 resistance will be another indication that whole fall from 1.2004 has completed. On the downside, however, break of 1.1265 minor support will turn focus back to 1.1154/98 key support zone.
In the bigger picture, for now, the price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1196) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
