Daily Pivots: (S1) 1.1782; (P) 1.1807; (R1) 1.1832; More…
EUR/CHF’s medium term rally is still in progress and is heading towards 1.2 handle. At this point, considering relatively weak upside momentum as seen in daily MACD we’d still expect strong resistance below 1.2 handle to limit upside and bring medium term reversal. But break of 1.1683 support is needed to indicate short term topping first. Otherwise, outlook will remain mildly bullish in case of retreat.
In the bigger picture, while a medium term top could be around the corner, there is no change in the larger outlook. That is, long term rise from SNB spike low back in 2015 is still in progress and would extend. As long as 1.1198 resistance turned support holds, we’ll hold on to this bullish view and expect another to prior SNB imposed floor at 1.2000. Though, we’ll reassess the outlook if 1.1198 is firmly taken out.
