EUR/CHF’s strong rebound last week raised the chance of near term trend reversal. As a temporary top was formed at 1.0662, initial bias remains neutral first. On the upside, above 1.0662 will target 1.0710 cluster resistance (38.2% retracement of 1.1059 to 1.0503 at 1.0715). Sustained break there will affirm the bullish case. However, break of 1.0578 minor support will bring retest of 1.0503 low instead.
In the bigger picture, as long as 1.0811 support turned resistance holds, we’d still expect larger down trend from 1.2004 (2018 high) to extend lower to parity. However, Firm break of 1.0811 should confirm medium term bottoming at 1.0503. Stronger rise should be seen back to 1.1059 resistance and above.
