EUR/CHF Daily Outlook

Daily Pivots: (S1) 0.9729; (P) 0.9745; (R1) 0.9763; More

EUR/CHF continues to lose downside momentum as seen in 4H MACD, but there is no sign of bottoming yet. But while deeper fall cannot be ruled out, strong support should be seen from 0.9704 to bring rebound. Break of 0.9847 will argue that choppy fall from 0.9995 has completed and turn bias back to the downside. However, firm break of 0.9704 will resume the whole decline from 1.0095 to 61.8% retracement of 0.9407 to 1.0095 at 0.9670.

In the bigger picture, prior rejection by 38.2% retracement of 1.1149 to 0.9407 at 1.0072 suggests that medium term outlook is staying bearish. The pair is also capped below 55 W EMA (now at 0.9963). Down trend from 1.2004 is not completed yet and is in favor to resume through 0.9407 at a later stage. However, decisive break of 1.0095 resistance will raise the chance of bullish trend reversal. Rise from 0.9407 should then target 1.0505 cluster resistance (2020 low at 1.0505, 61.8% retracement of 1.1149 to 0.9407 at 1.1484).

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