EUR/CHF breaks out
|The EUR/CHF resumed its bullish trend in early April after the breakdown attempt below key support at 1.1200 failed. Since then, every time it has printed a bearish-looking daily candle, those patterns have consistently proved to be traps for the bears. Consequently, we have seen a short squeeze rally above old highs circa 1.1440s, which has been taken out today. Thus, going forward, we expect the dips back to old resistance areas such as 1.1440 to be supported. The next pivotal level is 1.1500, around which we may see some profit-taking should we get there. Essentially, though, the trend is bullish, and we think that an eventual return to that 1.20 handle could be on the cards over the coming weeks and months. However, we would be quick to withdraw our bullish views should price action turns bearish – for example, if we now move back below the base of the latest bullish move at 1.1390.
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