USD/CHF’s fall accelerated to as low as 0.9620 last week, just inch above 100% projection of 1.0342 to 0.9860 from 1.0099 at 0.9617. Initial bias stays on the downside this week and deeper decline could be seen. But we’d start to look for bottoming signal again as it approaches 0.9443 key support level. On the upside, above 0.9718 minor resistance will turn intraday bias neutral first.
In the bigger picture, USD/CHF is still bounded in medium term range of 0.9443/1.0342 for the moment. Consolidative trading would likely continue and medium term outlook remains neutral. Break of 1.0342 key resistance is needed to confirm underlying bullish momentum in the pair. Meanwhile, downside attempts should be contained by 0.9443 key support level. However, sustained break of 0.9443 will carry larger bearish implication and target 0.9 handle.
