EUR/CHF Weekly Outlook

EUR/CHF Weekly Outlook

EUR/CHF had another rally attempt last week on UBS negative interest news but was limited at 1.2129. The cross the dipped again after SNB offered no surprise to the markets. We'd maintain that as long as 1.2129 minor resistance holds, the cross would spiral back down towards 1.2 SNB floor. Though, above 1.2129 will be a sign of buying re-emergence and could send the cross towards 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.