USD/CHF’s rebound from 0.8756 resumed last and hit as high as 0.9004. But as a temporary was formed there with subsequent retreat, initial bias is neutral this week first. Further rise is expected as long as 0.8925 support holds. Break of 0.9044 will extend the rebound, as a correction to whole fall from 0.9901, and target 38.2% retracement of 0.9901 to 0.8756 at 0.9193.
In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 high). There is no clear sign of completion yet. Next target will be 138.2% projection of 1.0342 to 0.9186 from 1.0237 at 0.8639. In any case, break of 0.9295 resistance is needed to signal medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
In the long term picture, price actions from 0.7065 (2011 low) are currently seen as developing into a long term corrective pattern, at least until a firm break of 1.0342 resistance.
