Weekly
   •   Last Candlesticks pattern: Doji
   •   Time of formation: 20 Feb 2017
   •   Trend bias: Up
Daily
   •   Last Candlesticks pattern: Doji
   •   Time of formation: 1 Sep 2016
   •   Trend bias: Near term down
EUR/CHF – 1.0973
The single currency did find renewed buying interest at 1.0865 last week and staged the anticipated rebound, however, as the pair met resistance at 1.0949 earlier this week and has retreated, suggesting further consolidation would be seen but said support at 1.0865 should limit downside and bring another rise later, above 1.0949 would signal the pullback from 1.0988 has ended, bring test of 1.0960, break there would suggest upmove has resumed for retest of 1.0988, then towards previous resistance at 1.1001. Looking ahead, only a break there would retain bullishness and encourage for headway to 1.1050-60, then 1.1100, having said that, price should falter below another previous resistance at 1.1201.
On the downside, expect pullback to be limited to 1.0900 and said support at 1.0865 should hold, bring another rise later to aforesaid upside targets. Below 1.0845-50 would defer and suggest top is possibly formed at 1.0988, bring test of support at 1.0792 which is likely to limit downside, bring rebound later. A daily close below this support at 1.0792 would abort and signal top is formed, bring subsequent fall to the upper Kumo (now at 1.0726) but support at 1.0671 should remain intact, the single currency shall stage another rebound from there.
Recommendation: Hold long entered at at 1.0865 for 1.1065 with stop below 1.0765.
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On the weekly chart, although euro rebounded from 1.0865 to 1.0949 last week, the subsequent retreat after faltering below last week’s high at 1.0960, suggesting minor consolidation would take place, however, reckon said support at 1.0865 would limit downside and bring another rise later, above 1.0960 would signal pullback from 1.0988 has ended, bring retest of this level, break there would extend recent upmove from 1.0631 to previous resistance at 1.1001, a sustained breach above this level would signal the fall from 1.1201 has ended, bring further gain to 1.1100 and possibly test of resistance at 1.1129 but price should falter below said recent high at 1.1201, bring retreat later.Â
On the downside, expect pullback to be limited to 1.0880-82 and said support at 1.0865 should hold, bring another rise. Below the lower Kumo (now at 1.0848) would risk test of the Tenkan-Sen (now at 1.0822) but break of the Kijun-Sen (now at 1.0810) is needed to suggest top is possibly formed, bring further fall to 1.0792 support, once this level is penetrated, this would add credence to this view, bring subsequent weakness towards 1.0725-30 but support at 1.0656 should remain intact, bring another rally next month.
