USD/CHF dropped sharply to as low as 0.9855 last week but recovered ahead of 0.9841 support. Initial bias is neutral this week first. With 0.9841 intact, rise from 0.9659 is extend to resume sooner or later. On the upside, above 0.9926 minor resistance will bring retest of 1.0027 resistance first. However, sustained break of 0.9841 will indicate near term reversal and pave the way back to 0.9659 support.
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.
