Daily Pivots: (S1) 0.9773; (P) 0.9810; (R1) 0.9832; More….
USD/CHF’s fall resumed by breaking 0.9807 and reaches as low as 0.9786 so far. Intraday bias is back on the downside for 100% projection of 1.0067 to 0.9866 from 0.9981 at 0.9780 and possibly below. As current decline from 1.0067 is seen as the third leg of consolidation from 1.0056, we’d expect strong support from 38.2% retracement of 0.9186 to 1.0056 at 0.9724 to bring rebound. On the upside, break of 0.9865 resistance should indicate short term bottoming and turn bias to the upside for 0.9981 resistance.
In the bigger picture, current development suggests that the consolidation pattern from 1.0056 is extending. As long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds, we’d expect rise from 0.9186 to resume at a later stage to retest 1.0342 key resistance (2016 high). However, sustained break of 0.9724 fibonacci level will bring deeper fall, as another declining leg in the long term range pattern.
