EUR/CHF gyrated lower as corrective fall from 0.9660 extended, but recovered after drawing support from 0.9489. Initial bias stays neutral first and further rally is expected. On the upside, above 0.9581 minor resistance will indicate that the pullback has completed and bring retest of 0.9660 high. Firm break there will resume whole rise from 0.9204. However, sustained break of 0.9489 will dampen this view, and bring deeper fall back to 0.9331 support next.
In the bigger picture, prior strong break of 55 W EMA (now at 0.9491) is a medium term bullish sign. Sustained break trading above long-term falling channel resistance (at around 0.9610) would suggest that the downtrend from 1.2004 (2018 high) has bottomed at 0.9204. Stronger rally should then be seen to 0.9928 key resistance at least.
In the long term picture, bullish signs are emerging. However, the important hurdle at 0.9928 resistance, which is close to 55 M EMA (now at 0.9960), is needed to be taken out decisively before considering long term trend reversal. Otherwise, outlook is neutral at best.
