Daily Pivots: (S1) 1.1174; (P) 1.1209; (R1) 1.1236; More…
EUR/CHF rebounds strongly today but it’s kept below 1.1319 minor resistance. Intraday bias is turned neutral first. Outlook is unchanged that strong support is expected from 1.1154/98 to bring rebound. On the upside, break of 1.1319 resistance will indicate short term bottoming. In such case, intraday bias will be turned back to the upside for 1.1452 resistance next. Break of 1.1452 will add to the case that whole correction from 1.2004 is completed. On the downside, however, sustained break of 1.1154/98 will carry larger bearish implications.
In the bigger picture, for now, the price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1196) too. A break of 1.2 key resistance is still expected in the medium to long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
