Hello traders! The EUR/CHF formed a strong support area between 1.0750 – 1.0760. This support has been respected throughout the entire past week with at least two different bounces. This goes to show bullish domination but only as long as daily closing prices remain above the 1.0750 level.
While the uptrend might not be the case, a correctional move to the upside would be a very reasonable price action. The key resistance is located at 1.0818 and corresponds with two Fibs, 50% and 38.2% as per the chart below. It also corresponds to the average price uptrend trendline as well as the simple downtrend trendlines. This means that there could be a fast 80 pip rise, which could take only a few days to be tested.
In regards to the downside risk, as has been mentioned already only a daily break and close below 1.0750 will completely invalidate bullish scenario and the downtrend can be expected to continue.
Bias: Strongly bullish while daily closing prices above 1.0750
Potential Support Zone: 1.0750 – 1.0760
Potential Targets: 1.0818
Have a profitable trading!