Daily Pivots: (S1) 1.1496; (P) 1.1570; (R1) 1.1609; More….
Strong rebound in EUR/CHF suggests temporary bottoming at 1.1513. Intraday bias is turned neutral first. While another fall cannot be ruled out yet, we’d expect strong support from 1.1445 to contain downside, at least on first attempt, to bring rebound. On the upside, above 1.1659 minor resistance will turn bias to the upside for 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 should 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. However, sustained break of 1.1445 will target next key cluster level at 1.1198 (2016 high), 61.8% retracement of 1.0629 to 1.2004 at 1.1154.
