Daily Pivots: (S1) 0.9908; (P) 0.9944; (R1) 0.9993; More…
USD/CHF recovered to 0.9977 and breached 0.9956 minor resistance. But there was no follow through buying. Hence, intraday bias is turned neutral first. On the downside, below 0.9892 will extend the corrective fall from 1.0056. But we’d expect strong support from trend line (now at 0.9825) to contain downside and bring rebound. On the upside, above 0.9977 will suggest that the pull back is finished and bring retest of 1.0056 high.
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 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds.
