EUR/CHF Weekly Outlook

EUR/CHF Weekly Outlook

EUR/CHF's recovery attempt was limited at 1.2142 and then dipped through 1.2079 support to as low as 1.2057 last week. Overall outlook remains unchanged. Consolidation from 1.2184 is still in progress. But downside should be contained by 1.2035 minor support and bring recovery. There is no scope for a strong rally in near term and more consolidation would likely be seen. But a break of 1.2142 minor resistance will now argue that EUR/CHF is building upside momentum again and would turn focus back to 1.2184 resistance.

In the bigger picture, current development indicates that further rally would likely be seen in EUR/CHF in medium term. However, such rally is viewed as part of a consolidative pattern. Break of 1.2472 resistance is possible. But we'd continue to expect strong resistance inside 1.2399/3243 resistance zone to limit upside. Meanwhile, any downside attempt should be contained by 1.2, the floor set by SNB.