Daily Pivots: (S1) 1.5072; (P) 1.5098; (R1) 1.5116;
Further decline in EUR/CHF cannot be ruled out but after all, price actions from 1.5380 are treated as corrective in nature. Hence, downside should be contained above 1.5007 low and bring strong rebound. Nevertheless, break of 1.5231 resistance is needed to signal that the cross has bottomed out. Otherwise, risk remains mildly on the downside.
In the bigger picture, firstly, price actions from 1.5446 are treated as consolidation to rise from 1.4577 only and such rise is expected to resume sooner or later to test 1.5880 resistance. Secondly, the corrective structure of the fall from 1.5880 to 1.4577 indicates that it’s a correction to medium term rise from 1.4315. Rise from 1.4577 is tentatively treated as resumption of rally from 1.4315. Hence we’re expecting an eventual break of 1.5880 as rise from 1.4315 resumes. In other words, we’re favoring the case that long term down trend from 1.6826 has completed at 1.4315 already. We’ll hold on to this bullish view as long as 1.5007 support remains intact.
Source: ActionForex