Daily Pivots: (S1) 1.1352; (P) 1.1454; (R1) 1.1540; More….
EUR/CHF breached 1.1445 support to as low as 1.1366 and recovered. There is no clear sign of bottoming yet and intraday bias stays on the downside. Sustained trading below 1.1445 will target next key support zone between 1.11543 and 1.1198. On the upside, above 1.1530 will turn intraday bias back to the upside and bring recovery first.
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.
