Daily Pivots: (S1) 0.9996; (P) 1.0026; (R1) 1.0058; More…
Breach of 0.9982 minor support suggests that USD/CHF has finally formed a short term top. It’s at 1.0056 after failing to sustain above 1.0037 key resistance. Intraday bias is turned to the downside for pull back to trend line support (now at 0.9761). At this point, we’d expect strong support from there to bring rally resumption. On the upside, sustained break of 1.0037 will resume recent rise for 1.0342 key resistance next.
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.
