The pair has failed to stay above the 1.1700 level again this week
You know what they say, three strikes and you're out. And something similar is taking shape here. On the daily chart, the pair failed to firmly close above the 1.1700 level in three attempts over the last two months.
If there's any signs that it's getting toppish, this is it. If the upward trendline from October to November fails to hold, the move to the downside could be sharp.
Today, minor data points (German regional inflation and Eurozone sentiment) in the EU has been rather positive but it's struggling to keep the EUR bid as we head into the US session. While the SNB will surely reiterate its stance that the CHF is overvalued in next month's monetary policy meeting, one musn't ignore the signs and possibility of a broader retracement.
As long as the ECB stays on track in tapering and tightening monetary policy, there's still further room to the upside for the pair. But this is a level where you'd want to stay sidelined until it breaks on either side before entering.
