Daily Pivots: (S1) 0.9654; (P) 0.9694; (R1) 0.9749; More…..
USD/CHF’s rebound from 0.9613 extends to as high as 0.9755 so far. However, it’s kept well below 0.9807 resistance. Thus, there is no clear indication of reversal yet. As long as 0.9807 stays intact, deeper fall is still in favor. Break of 0.9613 will extend the whole decline from 1.0342 to 0.9548 support and below. We’d start to look for bottoming signal again as it approaches 0.9443 key support level. However, considering bullish convergence condition in 4 hour MACD, break of 0.9807 will indicate near term reversal and turn outlook bullish for 1.0099 resistance next.
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.
