EUR/CHF’s corrective fall from 1.1832 extended lower last week. Initial bias remains on the downside this week for 1.1355 cluster support (38.2% retracement of 1.0629 to 1.1832 at 1.1372.) At this point, we’d expect strong support from there to contain downside and bring rebound. But break of 1.1639 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, a medium term top should be in place at 1.1832 on bearish divergence condition in daily MACD. But there is no indication of long term reversal yet. As long as 1.1198 resistance turned support holds, we’d still expect another rise through prior SNB imposed floor at 1.2000.
%20At%20this%20point,%20we'd%20expect%20strong%20support%20from%20there%20to%20contain%20downside%20and%20bring%20rebound.%20But%20break%20of%201.1639%20resistance%20is%20needed%20to%20indicate%20short%20term%20bottoming.%20Otherwise,%20outlook%20will%20remain%20bearish%20in%20case%20of%20recovery.%20){kind=link}