Daily Pivots: (S1) 0.9896; (P) 0.9957; (R1) 0.9990; More…
USD/CHF formed a temporary top at 1.0016 after hitting 61.8% retracement of 1.0237 to 0.9659 at 1.0016, and retreated sharply. Intraday bias is turned neutral for some consolidations first. But outlook stays mildly bullish as long as 0.9843 support holds. Further rally is still expected. On the upside, break of 1.0016 will target 78.6% retracement at 1.0113 next. However, on the downside, firm break of 0.9843 will indicate near term reversal and turn outlook bearish for 0.9659 low.
In the bigger picture, the structure of the fall from 1.0237 suggests that it’s a corrective move. Sustained break of 0.9975 will argue that such correction has completed at 0.9659, ahead of 61.8% retracement of 0.9186 to 1.0237 at 0.9587. But decisive break of 1.0237 is needed to indicate up trend resumption. Otherwise, medium term outlook will stay neutral first. Meanwhile, break of 0.9695 support will extend the correction to 0.9541 support instead.
