USD/CHF’s decline from 1.0169 accelerated lower last week. The development suggests that recovery from 0.9860 has completed at 1.0169. And, whole decline from 1.0342 is likely resuming.
Initial bias in USD/CHF remains on the downside this week for 0.9860 support. Break will extend the fall from 1.0342 and target 100% projection of 1.0342 to 0.9860 from 1.0169 at 0.9687. On the upside, above 1.0018 minor resistance will turn bias neutral. But outlook will now stay bearish as long as 1.0169 resistance holds.
In the bigger picture, USD/CHF is staying in medium term sideway pattern between 0.9443/1.0342. In any case, decisive break of 1.0342 resistance is needed to confirm underlying strength. Otherwise, we’ll stay neutral in the pair first. In case of another fall, we’d expect strong support from 0.9443/9548 support zone.
Meanwhile firm break of 1.0342 will target 38.2% retracement of 1.8305 to 0.7065 at 1.1359.
