Daily Pivots: (S1) 0.9905; (P) 0.9931; (R1) 0.9963; More…
Despite breaching 0.9977 minor resistance, there is no follow through buying yet. Intraday bias in USD/CHF remains neutral first. For now, we’re still treating price actions fro 1.0056 as a near term correction. Hence even in case of another fall, downside should be contained by trend line (now at 0.9853) to bring rebound. Above 0.9982 should bring retest of 1.0056 high. However, sustained break of the trend line will argue that it’s a larger scale correction and will target 0.9724 fibonacci level.
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.
