EUR/CHF was rejected by 1.1348 resistance last week and dropped sharply to 1.1259. But it then recovered strongly. Initial bias is neutral this week and outlook is unchanged. We continue to favor the case that choppy decline from 1.1501 has completed at 1.1181 already. On the upside, decisive break of 1.1348 will confirm this bullish case and turn bias to the upside for retesting 1.1501 next. On the downside, in case of another fall, we’d expect strong support from 1.1154/98 support zone to contain downside to bring rebound.
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. 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.