Daily Pivots: (S1) 1.0685; (P) 1.0706; (R1) 1.0747; More…
A temporary is formed at 1.0665 in EUR/CHF and intraday bias is turned neutral first. Larger down trend could extend lower. But we’d expect strong support from between 1.0665 and 61.8% projection of 1.1476 to 1.0811 from 1.1059 at 1.0648 to contain downside. Break of 1.0788 will indicate short term bottoming on bullish convergence condition in 4 hour MACD. Intraday bias will be turned to the upside fro stronger rebound.
In the bigger picture, down trend from 1.2004 is (2018 high) is still in progress. More importantly, it’s likely a long term down trend itself, rather than a correction. Further fall should be seen to 1.0629 support and sustained break will put parity back into focus. On the upside, break of 1.1059 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
