Daily Pivots: (S1) 0.9708; (P) 0.9741; (R1) 0.9772; More…
USD/CHF edged higher to 0.9772 but failed to take out 38.2% retracement of 1.0342 to 0.9437 at 0.9783 and retreated. Intraday bias is turned neutral first. Further rise is in favor as long as 0.9594 support holds. As noted before, prior break of 0.9699 resistance suggests near term reversal after defending 0.9443 key support. Break of 0.9783 will target channel resistance (now at 0.9887). However, firm break of 0.9594 will dampen our bullish view and turn bias back to the downside for 0.9437.
In the bigger picture, current development argues that USD/CHF has successfully defended 0.9443 key support level. And long term range trading in 0.9443/1.0342 is extending with another rise. At this point, there is no sign of an up trend yet. Hence, while further rise is expected in USD/CHF, we’ll start to be cautious on loss of momentum above 61.8% retracement of 1.0342 to 0.9437 at 0.9996.
