Daily Pivots: (S1) 0.9968; (P) 1.0004; (R1) 1.0032; More…
USD/CHF’s retreat was contained at 0.9956 and recovered. Intraday bias is turned neutral first. More corrective trading could be seen and below 0.9956 will bring deeper fall. But downside should be contained by trend line support (now at 0.9764) to bring rebound. On the upside, sustained break of 1.0037 will resume recent rise for 1.0342 key resistance next.
In the bigger picture, medium term decline from 1.0342 has completed with three waves down to 0.9186. Rise from there is currently viewed as a leg inside the long term range pattern. Hence, while further rally would be seen, we’d be cautious on strong resistance from 1.0342 to limit upside. For now, further rise is expected as long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds.
