EUR/CHF’s decline extended to as low as 1.1171 last week and it’s now at a critical juncture. We’d still look for strong support from 1.1162 to contain downside to bring near term reversal. On the upside, break of 1.1278 resistance will suggests that fall from 1.1476 has completed and turn near term outlook bullish. However, sustained break of 1.1162 could carry larger bearish implication.
In the bigger picture, at this point, we’re seeing fall from 1.2004 as a corrective pattern. And downside should be contained by 61.8% retracement of 1.0629 to 1.2004 at 1.1154. However, sustained break of 1.1154 will confirm resumption of decline from 1.2004. More importantly, this will argue that fall from 1.2004 is itself a long term down trend. Next target will be 1.0629 support next.
