EUR/CHF Daily Analysis
The intraday bias in EUR/CHF has turned neutral following the formation of a temporary low at 0.9797. Although some consolidation may occur, a deeper decline is expected with the minor resistance level at 0.9889 remaining intact. If 0.9797 is broken, the next target is the support level at 0.9704, and possibly lower, as the corrective pattern from 1.0095 continues. However, a break above the minor resistance level at 0.9889 would turn the intraday bias back to the upside, signaling a stronger rebound.
Looking at the bigger picture, the rejection by the 55-week EMA (now at 0.9989) and the 38.2% retracement of the move from 1.1149 to 0.9407 at 1.0072 suggests that the medium-term outlook remains bearish. The downtrend from 1.2004 is still in progress and is likely to resume through 0.9407 at a later stage. Nevertheless, a decisive break above the resistance level at 1.0095 would increase the likelihood of a bullish trend reversal. In this scenario, the rise from 0.9407 should target the cluster resistance at 1.0505 (the 2020 low at 1.0505 and the 61.8% retracement of the move from 1.1149 to 0.9407 at 1.1484).
