Daily Pivots: (S1) 1.1819; (P) 1.1883; (R1) 1.1917; More…

EUR/CHF drops sharply to as low as 1.1817 as correction from 1.2004 extends. Intraday bias is back on the downside for deeper fall. For now, we’d still strong support from 38.2% retracement of 1.1445 to 1.2004 at 1.1790 to contain downside and bring rebound. And decisive break of 1.2004 will confirm up trend resumption. However, sustained break of 1.1790 will at least bring deeper fall to 61.8% retracement at 1.1659 and below.

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In the bigger picture, long term up trend in EUR/CHF is still in progress. Prior SNB imposed floor at 1.2000 was already met but there is no sign of reversal yet. As long as 1.1445 support holds, we’d expect the up trend to extend to 2013 high at 1.2649 next. However, considering bearish divergence condition in daily MACD. Break of 1.1445 will be an indication of medium term reversal and will turn outlook bearish.

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