- The EUR/CHF has rebounded from 1.0412 level and trying to break the resistance level at 1.0468, currently the pair is trading at 1.04508.
- The pair is more likely to go to higher level and consolidate above the 38.2% retracement level on the 4 hour chart.
- The cross remained unchanged after the Swiss National Bank kept its monetary policy unchanged today with the target range for the 3-month Libor between -1.25% and -0.25% and the interest on sight deposits at -0.75%.
- SNB reiterated that negative rates will help weakening the franc over time, which still remains 'significantly overvalued'.
- Major support is seen at 1.03938( 61.8% retracement level ), a break below at this level will expose the pair to 1.03496.
Recommendation: Good to buy at dips around 1.04266 with Targets 1.0500, 1.0550 SL 1.03800.
Resistance Levels
R1: 1.0468 ( 38.3 % reteracement level) R2: 1.0502 (23.65% reteracement level)
R3: 1.0540
Support Levels
S1: 1.04266 (50 % retracement level)
S2: 1.03938 (61.8 % retracement level)
S3: 1.03496 (76.4% retracement level
