Daily Pivots: (S1) 1.1640; (P) 1.1662; (R1) 1.1684; More…
Intraday bias in EUR/CHF stays neutral at this point. With 1.1618 minor support intact, the corrective rise from 1.1366 could extend higher. but upside should be limited by 61.8% retracement of 1.2004 to 1.1366 at 1.1760 to bring near term reversal. On the downside, 1.1618 will turn bias back to the downside for 1.1478 support and below. However, sustained trading above 1.1760 will pave the way to retest 1.2004 high next.
In the bigger picture, 1.2004 is seen as a medium term top with bearish divergence condition in daily and weekly MACD. 1.2000 is also an important resistance level. Hence, the corrective pattern from 1.2004 is expected to extend for a while before completion. Hence, 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.
