Daily Pivots: (S1) 0.9933; (P) 0.9962; (R1) 0.9978; More…
USD/CHF drops sharply to as low as 0.9873 so far. But for now, it’s still seen as in consolidation from 1.0027. Downside should be contained by 0.9843 support to bring another rally. On the upside, break of 1.0027 will resume the rise from 0.9659 to 78.6% retracement of 1.0237 to 0.9659 at 1.0113 next. However, firm break of 0.9843 will argue that rise from 0.9659 has completed. In this case, further fall should be seen to retest 0.9659.
In the bigger picture, corrective fall from 1.0237 should have completed at 0.9659 already, 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.
