Daily Pivots: (S1) 0.9942; (P) 0.9987; (R1) 1.0013; More…
USD/CHF drops sharply to as low as 0.9926 and took out 4 hour 55 EMA decisively. The development dampens our bullish view. Intraday bias is turned to the downside for 0.9856 support next. On the upside, though, above 0.9989 minor resistance will bring retest of 1.0067. Decisive break there will revive the case of resumption of rise from 0.9186.
In the bigger picture, rise from 0.9186 is seen as a leg inside the long term range pattern. After drawing support from 55 day EMA, it’s now resuming for 1.0342 key resistance. For now, we’d still cautious on strong resistance from there to limit upside. Meanwhile, break of 0.9787 support is needed to signal completion of the rise. Otherwise, outlook will remain bullish even in case of deep pull back.
