Follow Through Buying In EUR/CHF

Technical Reports

The cross broke 1.1656 resistance and there was no follow through buying. Trading is still neutral. Breach of 1.1599 minor support should confirm ending of recoil from 1.1478. In that case, trading should turn up on the downside to 1.1478 and align a test on temporary bottom of 1.1366. Following pivot points include: (S1) 1.1618; (P) 1.1638; (R1) 1.1672.

Strong breach of 1.1656 will extend the corrective increase from 1.1366 for 61.8% retracement of 1.2004 to 1.1366 at 1.1760. Decisive resistance from that place should bound upside.

There has been a strong rejection from prior SNB imposed floor of 1.2000. A medium term top could be formed at 1.2004, basing on a bearish divergence condition in daily MACD. Price dynamic from 1.2004 is seen as correction for the uptrend from 1.0629. Larger decline should align a 1.1198 key cluster level, 61.8% retracement of 1.0629 to 1.2004 at 1.1154. Sustained support from that area should restrain downside.