Daily Pivots: (S1) 1.0718; (P) 1.0730; (R1) 1.0748; More….
EUR/CHF’s break of 1.0750 resistance suggests short term bottoming at 1.0678, on bullish convergence condition in 4 hour MACD. Stronger rebound could be seen to 55 day EMA (now at 1.0794). Sustained break there will target 1.0936 resistance. On the downside, break of 1.0678 will resume larger fall from 1.1149.
In the bigger picture, the rejection by 55 week EMA maintains medium term bearishness. Fall from 1.1149 (2021 high) is currently seen as the second leg of the patter from 1.0505 (2020 low) first. Hence, in case of deeper fall, we’d look for strong support from 1.0505 to bring rebound. However, sustained break of 1.0505 will resume the long term down trend from 1.2004 (2018 high). Also, medium term outlook will now be neutral at best as long as 1.0936 resistance holds.
