Daily Pivots: (S1) 0.9850; (P) 0.9916; (R1) 0.9981; More…
USD/CHF recovers after touching near term rising trend line support. But upside is limited below 0.9982 minor resistance. Intraday bias remains neutral first. We’d continue to expect strong support from the trend line to complete the correction from 1.0056 to bring rise resumption. Above 0.9982 will bring retest of 1.0056 first. However, sustained break of the trend line will argue that it’s a larger scale correction and will target 0.9724 fibonacci level.
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.
