Daily Pivots: (S1) 0.9997; (P) 1.0021; (R1) 1.0040; More…
No change in USD/CHF’s outlook. It continues to lose upside momentum as seen in 4 hour MACD. But with 0.9982 minor support intact, further rally is still expected. Sustained trading above 1.0037 will pave the way to 1.0342 key resistance next. On the downside, though, below 0.9982 minor support will indicate short term topping, on bearish divergence condition in 4 hour MACD. And, in that case, deeper retreat could be seen, possibly to trend line support (now at 0.9735) before staging another rally.
In the bigger picture, medium term decline from 1.0342 has completed with three waves down to 0.9186. Rise from there is currently viewed as a leg inside the long term range pattern. Hence, while further rally would be seen, we’d be cautious on strong resistance from 1.0342 to limit upside. For now, further rise is expected as long as 0.9648 resistance turned support holds, even in case of pull back.
