Daily Pivots: (S1) 0.9825; (P) 0.9892; (R1) 0.9945; More…
USD/CHF’s decline extends to as low as 0.9793 so far today. The strong break of 0.9848 support and downside acceleration is taken as an early sign trend reversal. Intraday bias is now on the downside for cluster support at 0.9765/8 (61.8% retracement of 0.9541 to 1.0128 at 0.9765, 38.2% retracement of 0.9186 to 1.0128 at 0.9768). We’ll look for bottoming signal again there but decisive break will pave the way back to 0.9541 support.
In the bigger picture, the deeper then expected fall form 1.0128 argues that medium term rally from 0.9186 might have completed at 1.0128 already, on bearish divergence condition in daily and weekly MACD. Break of 0.9541 key support will confirm this bearish case. More importantly, the corrective three wave structure will in turn argue that long term decline from 1.0342 (2016 high) is resuming. In that case, 0.9186 will be the next target.
