Daily Pivots: (S1) 0.9882; (P) 0.9934; (R1) 0.9971; More…
USD/CHF’s break of 0.9894 minor support suggests that rebound from 0.9787 is completed at 0.9989. And, correction from 1.0056 is extending. Intraday bias is turned back to the downside for 0.9787 support and possibly below. But we’d expect strong support from 38.2% retracement of 0.9186 to 1.0056 at 0.9724 to contain downside to bring rebound. On the upside, break of 0.9989 will target a test on 1.0056 first. Break will resume whole rise from 0.9186.
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.
