Daily Pivots: (S1) 1.1583; (P) 1.1624; (R1) 1.1660; More….
A temporary low is in place at 1.1580 and intraday bias is turned neutral first. Some consolidation would be seen in EUR/CHF but deeper fall is expected as long as 1.1770 resistance holds. Below 1.1580 will target key support level at 1.1445. We’d expect strong support from there to bring rebound, at least, on first attempt. Meanwhile, firm break of 1.1770 will suggest that the pull back from 1.2004 is already completed and turn bias back to the upside for stronger rebound.
In the bigger picture, current development suggests solid rejection by prior SNB imposed floor at 1.2000. Considering bearish divergence condition in daily MACD, 1.2004 could be a medium term top. And price action from 1.2004 is correcting the up trend from 1.0629. Hence, for now, deeper fall could be seen back to 1.1445, which is close to 38.2% retracement of 1.0629 to 1.2004 at 1.1479. We’d expect strong support from there to bring rebound to extend the medium term corrective pattern.
