EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1727; (P) 1.1750; (R1) 1.1763;
EUR/CHF’s rally from 1.1445 is still in progress and further rise should be seen to retest 1.1832 resistance. At this point, we’d remain cautious on strong resistance from there to bring another fall to extend recent corrective pattern. Though, firm break will confirm resumption of larger up trend. On the downside, break of 1.1649 support will turn focus back to 1.1445 instead.
In the bigger picture, a medium term top should be in place at 1.1832 on bearish pergence condition in daily MACD. But there is no indication of long term reversal yet. As long as 1.1198 resistance turned support holds, we’d still expect another rise through prior SNB imposed floor at 1.2000.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 130.20; (P) 131.00; (R1) 131.43;
Intraday bias in EUR/JPY remains neutral as it’s staying in consolidation between 128.94 and 132.40. Near term outlook also stays bearish and another decline is expected. On the downside break of 128.94 will extend the whole fall from 137.49 to 126.61 medium term fibonacci level next. Nonetheless, break of 132.40 should confirm short term bottoming and turn bias back to the upside for stronger rebound.
In the bigger picture, current development argues that rise from 109.03 (2016 low) has completed at 137.49, on bearish pergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. Sustained break there would pave the way to 61.8% retracement at 119.90. On the upside, break of 132.40 resistance will indicate that the pull back is completed and bring retest of 137.49. But still, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, outlook is neutral at best for consolidations.