Daily Pivots: (S1) 0.9736; (P) 0.9773; (R1) 0.9801; More…..
USD/CHF’s decline continues to as low as 0.9734 so far today and intraday bias remains on the downside for 38.2% retracement of 0.9186 to 1.0056 at 0.9724. At this point, we’re still view price actions from 1.0056 as a consolidation pattern. Thus, downside should be contained by 0.9724 to bring rebound. On the upside, above 0.9775 minor resistance will turn intraday bias neutral first. Break of 0.9865 resistance should confirm near term reversal. However, sustained break of 0.9724 will carry larger bearish implications.
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 38.2% retracement of 0.9186 to 1.0056 at 0.9724 will at least bring deeper fall to 61.8% retracement at 0.9518 before completion.
