EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1243; (P) 1.1258; (R1) 1.1277;
With 4 hour MACD crossed above signal line, a temporary low is in place at 1.1236 after breaching 1.1242 support. Intraday bias is turned neutral for consolidation. Further fall is expected as long as 1.1310 minor resistance holds. Below 1.1236 will target key support zone at 1.1154/98. At this point, we’d still expect strong support from there to bring rebound. On the upside, above 1.1310 minor resistance will turn bias back to the upside for 1.1452 resistance. However, sustained break of 1.1154/98 will carry larger bearish implications.
In the bigger picture, for now, the price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1173) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8982; (P) 0.9009; (R1) 0.9051;
Intraday bias in EUR/GBP remains on the upside for retesting 0.9097 resistance. Break there will resume larger rally from 0.8620 towards 0.9305 high. On the downside, however, break of 0.8937 support should have near term channel support firmly taken out. And that will indicate completion of rise from 0.8620 and turn outlook bearish.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
