Daily Pivots: (S1) 0.9745; (P) 0.9764; (R1) 0.9791; More….
USD/CHF is still staying in corrective trading above 0.9689 temporary low. Intraday bias remains neutral at this point. As long as 4 hour 55 EMA (now at 0.9785) holds, deeper fall is mildly in favor. But we’d expect 61.8% retracement of 0.9420 to 0.1.0037 at 0.9656 to contain downside and bring rebound. Sustained break of 4 hour 55 EMA will argue that the correction from 1.0037 has completed and turn focus to 0.9977 resistance for confirmation.
In the bigger picture, range trading continues between 0.9420/1.0342. At this point, 0.9420 appears to be a strong support level. Therefore, in case of decline attempt, we don’t expect a firm break of this level. Nonetheless, strong break of 1.0342 is also needed to confirm upside momentum. Otherwise, medium term outlook will stay neutral.
