Daily Pivots: (S1) 0.9942; (P) 0.9987; (R1) 1.0013; More…
USD/CHF’s pull back fro 1.0067 is still in progress. At this point, we’d still expect strong support from 4 hour 55 EMA (now at 0.9960) to contain downside and bring rebound. Above 1.0067 will extend larger rise from 0.9186 to 61.8% projection of 0.9186 to 1.0056 from 0.9787 at 1.0325, which is close to 1.0342 key resistance. However, sustained break of the 4 hour 55 EMA will dampen this bullish view and turn focus back to 0.9858 support instead.
In the bigger picture, rise from 0.9186 is seen as a leg inside the long term range pattern. After drawing support from 55 day EMA, it’s now resuming for 1.0342 key resistance. For now, we’d still cautious on strong resistance from there to limit upside. Meanwhile, break of 0.9787 support is needed to signal completion of the rise. Otherwise, outlook will remain bullish even in case of deep pull back.
