Daily Pivots: (S1) 0.9823; (P) 0.9862; (R1) 0.9899; More…
USD/CHF failed to sustain below trend line support and recovered. Intraday bias is turned neutral again. On the upside, break of 0.9982 will indicate that pull back from 1.0056 has completed and bring retest of this resistance. However, on the downside, break of 0.9825 will indicate that fall from 1.0056 is a larger scale correction. In such case, deeper decline would be seen back to 0.9724 fibonacci level before completion.
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.
