Daily Pivots: (S1) 0.9701; (P) 0.9786; (R1) 0.9836; More….
USD/CHF rebounds strongly today and intraday bias is turned neutral first. With 0.9881 minor resistance intact, deeper fall cannot be ruled out. Break of 0.9734 will target 61.8% retracement of 0.9420 to 1.0037 at 0.9656. Nonetheless, as choppy fall from 1.0037 is seen as a correction, we’ll look for bottoming again below 0.9656 and above 0.9420. On the upside, break of 0.9881 resistance will now indicate completion of the decline. And intraday bias will be turned back to the upside for 1.0037.
In the bigger picture, range trading continues between 0.9420/1.0342. At this point, 0.9420 appears to be a strong support level. Therefore, in case of decline attempt, we don’t expect a firm break of this level. Nonetheless, strong break of 1.0342 is also needed to confirm upside momentum. Otherwise, medium term outlook will stay neutral.
