EUR/CHF Weekly Outlook

EUR/CHF Weekly Outlook

Overall outlook in EUR/CHF 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.