Daily Pivots: (S1) 1.1493; (P) 1.1571; (R1) 1.1611; More….
Despite dipping to 1.1519, EUR/CHF quickly recovered and intraday bias is turned neutral first. Outlook is unchanged at the the corrective pattern from 1.2004 is still in progress. And, another decline is expected before the correction completes. Below 1.1505 minor support will turn bias to the downside for retesting 1.1366 low first. Above 1.1656 will extend the rebound to 61.8% retracement of 1.2004 to 1.1366 at 1.1760. But, we’ll we’ll look for reversal signal above 1.1760.
In the bigger picture, current development suggests solid rejection by prior SNB imposed floor at 1.2000. Considering bearish divergence condition in daily and weekly MACD, 1.2004 should be a medium term top. And price action from 1.2004 is correcting the up trend from 1.0629. Such correction is expected to extend for a while and therefore, we’re not anticipating a break of 1.2004 in near term. Another decline cannot be ruled out yet. But in that case, strong support should be seen at 1.1198 (2016 high), 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to contain downside.
