EUR/CHF’s rally from 0.8979 continued last week and surged through 0.9394 key resistance. Initial bias stays on the upside this week. Next target is 138.2% projection of 0.8979 to 0.9264 from 0.9094 at 0.9488. On the downside, below 0.9362 minor support will turn bias neutral and bring consolidations first, before staging another rise.
In the bigger picture, the break of 0.9394 resistance solidify the case that rise from 0.8979 medium term is at least reversing the fall from 0.9928 (2024 high), with prospect of developing into a medium term up trend. Further rally should be seen to 0.9660 resistance next. This will remain the favored case as long as 0.9264 resistance turned support holds, in case of pullbacks.
In the long term picture, focus is now on 0.9407 support turned resistance (2022 low). Sustained break there will argue that the down trend from 1.2004 (2018 high) has completed with five waves down to 0.8979. Stronger rebound should then be seen to 38.2% retracement of 1.2004 to 0.8979 at 1.0135 in the medium term.
