EUR/CHF reached as low as 1.1296 last week as fall from 1.1501 extended. We’re still seeing such decline as a corrective move and expect strong support from 61.8% retracement of 1.1173 to 1.1501 at 1.1298 to contain downside and bring rebound. On the upside, break of 1.1356 minor resistance will turn bias back to the upside for 1.1433 resistance first. However, sustained break of 1.1298 will turn focus back to 1.1173 low.
In the bigger picture, 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 1.1240) 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.
