USD/CHF dropped to as low as 0.9881 last week but lost momentum ahead of 0.9860 support and recovered. With a temporary low formed, some consolidations could be seen. But overall outlook is unchanged. That’s is, whole fall from 1.0342 is not completed yet and another decline is in favor through 0.9860.
Initial bias in USD/CHF stays neutral this week first. Deeper fall is expected as long as 1.0002 minor resistance holds. Break of 0.9860 will extend the fall from 1.0342 to 100% projection of 1.0342 to 0.9860 from 1.0169 at 0.9687 and possibly below. However, break of 1.0002 will argue that fall from 1.0169 is finished and will turn bias back to the upside for this resistance instead.
In the bigger picture, USD/CHF is staying in medium term sideway pattern between 0.9443/1.0342. In any case, decisive break of 1.0342 resistance is needed to confirm underlying strength. Otherwise, we’ll stay neutral in the pair first. In case of another fall, we’d expect strong support from 0.9443/9548 support zone.
Meanwhile firm break of 1.0342 will target 38.2% retracement of 1.8305 to 0.7065 at 1.1359.
