EUR/CHF engaged in sideway trading last week and outlook is unchanged. We’re holding on to the bullish view of trend reversal. Upside break out is expected after the consolidation completes.
Initial bias in EUR/CHF is neutral this week first. Further rally is expected as long s 1.0791 support holds. Break of 1.0872 will extend current rise to 1.0897 resistance. Decisive break there should confirm our bullish view of reversal and will target 1.0999 resistance next However, break of 1.0791 support will indicate short term topping and turn bias back to the downside for 55 day EMA (now at 1.0739).
In the bigger picture, the price actions from 1.1198 are seen as a corrective move. Current strong rebound is raising the chance that it’s completed after defending 38.2% retracement of 0.9771 to 1.1198 at 1.0653. Decisive break of 1.0999 resistance will target a test on 1.1198 high. For now, this will be the preferred case as long as 1.0652 support holds.
