Daily Pivots: (S1) 0.9690; (P) 0.9714; (R1) 0.9748; More…..
USD/CHF drops sharply today with focus on 0.9613 support. Decisive break there will extend the decline from 1.0342 and target 0.9548 support and below. We’d start to look for bottoming signal again as it approaches 0.9443 key support level. In any case, outlook will remain bearish as long as 0.9807 resistance holds. Firm break of 0.9807, however, will indicate near term reversal and turn outlook bullish for 1.0099 resistance next.
In the bigger picture, USD/CHF is still bounded in medium term range of 0.9443/1.0342 for the moment. Consolidative trading would likely continue and medium term outlook remains neutral. Break of 1.0342 key resistance is needed to confirm underlying bullish momentum in the pair. Meanwhile, downside attempts should be contained by 0.9443 key support level. However, sustained break of 0.9443 will carry larger bearish implication and target 0.9 handle.
