EURCHF is looking bullish in the medium-term having found support from the confluence of two key levels, according to Tony Sycamore, Director of Australia-based TECHFX TRADERS.
Sycamore says EURCHF is finding good support at 1.1184 from both the 61.8% Fibonacci retracement of the 2017 to 2018 uptrend (Chart 1) and the September 2018 low (Chart 2). However, he warns that 1.1350 is providing short-term resistance and EURCHF still needs to close above this level for him to consider going long. A break below around 1.1180 would result in a more neutral stance.
Another piece of bullish evidence comes from a comparison with Italian bond yields. Sycamore points out that EURCHF is trading cheaply when compared to Italian 10 year bond yields (Chart 3 (yield is inverted on the Chart)).