Daily Pivots: (S1) 0.9818; (P) 0.9855; (R1) 0.9909; More…
USD/CHF rebounded strongly just ahead of 0.9848 key support again. But upside is limited below 0.9989 resistance. Intraday bias remains neutral first. At this point, we’d still expect strong support from 0.9848 to contain downside to complete the correction from 1.0128. On the upside, break of 0.9989 resistance will argue that such correction is completed. Intraday bias will be turned back to the upside for retesting 1.0128 high. However, decisive break of 0.9848 support will bring deeper decline to 0.9541 key support instead.
In the bigger picture, current development suggests that the medium term rally from 0.9186 hasn’t completed yet. Break of 1.0128 will target 1.0342 key resistance next (2016 high). On the downside, firm break of 0.9848 support will dampen this bullish view and turn focus back to 0.9541 key support instead.
