EURCHF – initial basing signal is developing
Tuesday’s strong downside rejection at 1.1540 zone and close above daily Kijun-sen (1.1567) suggests that two-legged pullback from 1.1715 (26 Oct high, the highest traded since the SNB scrapped 1.20 floor on 16 Jan 2015) has found footstep.
This could be seen as initial reversal signal which needs extension above falling hourly cloud (spanned between 1.1597 and 1.1613) for confirmation.
Further upside would then look for test of 1.1664 pivot (01 Nov lower top), break of which would expose key barrier at 1.1715.
Failure to extend recovery could result in fresh dips which could challenge another key support at 1.1500 zone, provided by top of daily Ichimoku cloud.
However, dip-buying scenario remains favored while cloud top stays intact.
Res: 1.1597; 1.1612; 1.1635; 1.1664
Sup: 1.1567; 1.1542; 1.1511; 1.1498