EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1700; (P) 1.1722; (R1) 1.1752;
EUR/CHF retreated deeply after hitting 1.1748 and intraday bias is turned neutral again. Another rise is expected with 1.1672 support intact. Above 1.1748 will target a test on 1.1832 high. At this point, we’ll stay cautious strong resistance from there to bring another fall. Corrective pattern from 1.1832 might still have an attempt on 1.1355 cluster support (38.2% retracement of 1.0629 to 1.1832 at 1.1372) before completion. On the downside, below 1.1672 minor support will target 1.1445 low again. However, decisive break of 1.1832 will confirm up trend resumption for 1.2 handle next.
In the bigger picture, a medium term top should be in place at 1.1832 on bearish divergence condition in daily MACD. But there is no indication of long term reversal yet. As long as 1.1198 resistance turned support holds, we’d still expect another rise through prior SNB imposed floor at 1.2000.
EUR/USD Daily Outlook
Daily Pivots: (S1) 1.2202; (P) 1.2278 (R1) 1.2317;
Despite breaching 1.2257, EUR/USD recovered without sustaining below. Intraday bias remains neutral first. On the upside, break of 1.2358 resistance will revive the bullish case. That is, pull back from 1.2445 has completed. Intraday bias will be turned back to the upside for 1.2445 and then 1.2555 key resistance. However, sustained break of 1.2257 turned back to the downside, to resume the fall from 1.2555 through 1.2154.
In the bigger picture, key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 remains intact despite attempts to break. Hence, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. Rejection from 1.2516 will maintain long term bearish outlook and keep the case for retesting 1.0039 alive. Firm break of 1.1553 support will add more medium term bearishness. However, sustained break of 1.2516 will carry larger bullish implication and target 61.8% retracement of 1.6039 to 1.0339 at 1.3862.
