USD/CHF’s decline from 0.9304 extended further to as low as 0.9030 last week before recovering mildly. Initial bias stays neutral this week first. In case of another recovery, upside should bel limited below 0.9165 resistance. On the downside, break of 0.9030 will target 0.8998 low first. Firm break there will resume larger down trend to 61.8% projection of 0.9901 to 0.8998 from 0.9304 at 0.8746.
In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 high). There is no clear sign of completion yet. On resumption, next target will be 138.2% projection of 1.0342 to 0.9186 from 1.0237 at 0.8639. Nevertheless, strong break of 0.9304 resistance will be an early sign of trend reversal and turn focus back to 0.9901 key resistance for confirmation.
In the long term picture, price actions from 0.7065 (2011 low) are currently seen as developing into along term corrective pattern, at least until a firm break of 1.0342 resistance.
