1.0983 Remains A Key Hurdle For EUR/CHF
Although EUR/CHF rebounded last week, as euro met resistance at 1.0983 and has retreated again, retaining our view that further consolidation below recent high of 1.1050 would be seen and mild downside bias remains for another corrective fall to 1.0823 support, break there would add credence to our view that top has possibly been formed at 1.1050, bring retracement of recent upmove to 1.0750 and then test of previous support at 1.0713 which is likely to hold from here.
On the upside, whilst recovery to 1.0920-25 cannot be ruled out, reckon said resistance at 1.0983 would cap upside and bring another retreat later. Above said resistance would bring retest of recent high at 1.1050 but break there is needed to signal recent upmove has resumed for headway to 1.1110-15 (61.8% projection of 1.0314-1.0962 measuring from 1.0713) and possibly 1.1135-40 (1.618 times projection of 1.0314-1.0690 measuring from 1.0531) but price should falter below 1.1200.
On the weekly chart, as 1.0983 has capped euro’s rebound from 1.0823, retaining our view that further consolidation below resistance at 1.1050 would be seen and mild downside bias remains for another test of 1.0821-23 (current level of the Tenkan-Sen and said support), however, break there is needed to bring correction of recent rise to previous support at 1.0713, however, price should stay well above the Kijun-Sen (now at 1.0643), bring another rise later.