Daily Pivots: (S1) 0.9951; (P) 0.9970; (R1) 0.9995; More…
Intraday bias in USD/CHF remains on the upside for 1.0056. Firm break there will resume the rally from 0.9186 and target 61.8% projection of 0.9186 to 1.0056 from 0.9787 at 1.0325, which is close to 1.0342 key resistance. On the downside, though, below 0.9894 minor support will turn bias neutral and could extend the correction from 1.0056 for a while.
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. However, sustained break of 0.9724 will dampen this bullish view and would at least bring deeper fall to 61.8% retracement at 0.9518.
