Daily Pivots: (S1) 1.1880; (P) 1.1901; (R1) 1.1936; More…
EUR/CHF recovered after dipping to 1.1864 and intraday bias is turned neutral first. Further fall is expected as long as 1.1932 minor resistance holds. A short term top was formed at 1.2004 after failing to sustain above 1.2 handle. Below 1.1864 will target 38.2% retracement of 1.1445 to 1.2004 at 1.1790. Though, we’d expect strong support from there to bring rebound. On the upside, above 1.1932 will turn focus back to 1.2004 high.
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.
