EUR/CHF rises back above 1.1500, ready to test 2017 highs?

EU/CHF accelerated to the upside today and broke above 1.1500. The pair reached two-week highs at 1.1516 and approached 2017 tops. The euro strengthened against the Swiss franc despite the Catalan quest for independence. 

On Tuesday, the Catalan president, Carles Puigdemont, could declare independence while Spain’s Prime Minister Mariano Rajoy warned that he could impose direct rule on Catalonia. 

The political tension in Spain has not affected the euro against the Swiss franc so far. EUR/CHF is moving with a bullish bias in the short-term and has risen back above the 20-day moving average. 

Today is headed toward the highest close since September 22. Back then it reached at 1.1622, the strongest level since January 2015, when the Swiss National Bank dropped the 1.20 floor. 

Technical outlook

Two weeks ago EUR/CHF made a sharp correction from the above 1.1600, toward 1.1400. It bottomed last Monday at 1.1388 and then moved into a consolidation phase. Today is breaking to the upside. It is too early to see how strong and sustainable the move is, but the short-term outlook points to the upside, as long as price remains above 1.1450. 

To the upside, resistance levels might be located at 1.1515/20 (Oct 09 high), 1.1560 (Sep 19 high / Sep 22 low) and 1.1600. On the flip side, support levels could be seen at 1.1495 (Oct 6 high), 1.1445 (Oct 5 & 6 low) and 1.1425 (Oct 4 low).