Daily Pivots: (S1) 1.1521; (P) 1.1576; (R1) 1.1606; More….
EUR/CHF”s fall resumes after brief consolidation and hits as low as 1.1445 so far. 1.1445 is seen as an important support and we’ll see if it can hold. On the upside, above 1.1553 should indicate short term bottoming and turn bias back to the upside for stronger rebound. However, sustained break of 1.1445 will bring deeper decline to next key support zone between 1.11543 and 1.1198.
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. The cross has met 1.1445 already, 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.
