Daily Pivots: (S1) 0.9772; (P) 0.9821; (R1) 0.9853; More…
USD/CHF’s corrective fall from 1.0056 is still in progress. Intraday bias stays on the downside for 0.9724 fibonacci level. We’d expect strong support from there to bring rebound. Though, on the upside, break of 0.9911 minor resistance is needed to indicate completion of the fall. Otherwise, near term outlook will remain mildly bearish in case of recovery.
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. However, sustained break of 0.9724 will dampen this bullish view and would at least bring deeper fall to 61.8% retracement at 0.9518.
