Daily Pivots: (S1) 0.9951; (P) 0.9977; (R1) 1.0026; More…
USD/CHF’s pull back from 1.0067 to 0.9926 was much deeper than expected. But subsequent quick and strong rebound saved the bullish case. Intraday bias is now mildly on the upside for 1.0067 first. Break there will resume the larger rise from 0.9186. USD/CHF should then target 61.8% projection of 0.9186 to 1.0056 from 0.9787 at 1.0325, which is close to 1.0342 key resistance. However, break of 0.9926 will dampen the bullish view again.
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.
