USD/CHF’s decline lost momentum ahead of 0.9851 support last week and recovered. Initial bias remains neutral this week first. Consolidation from 1.0027 might extend further through 0.9851. On the upside, break of 0.9978 will target 1.0027 first.
In the bigger picture, medium term outlook remains neutral as USD/CHF is staying in range of 0.9659/1.0237. In any case, decisive break of 1.0237 is needed to indicate up trend resumption. Otherwise, more sideway trading would be seen with risk of another fall. Meanwhile, break of 0.9695 support will target 0.9541 support instead.
In the long term picture, price actions from 0.7065 (2011 low) are not clearly impulsive yet. Thus, we’ll treat it as developing into a corrective pattern, at least, until a firm break of 1.0342 resistance.
