Daily Pivots: (S1) 0.9916; (P) 0.9943; (R1) 0.9959; More…
USD/CHF’s sharp fall and solid break of 0.9920 support suggests that rebound from 0.9866 has completed at 0.9984. And the fall from 1.0067 is possibly resuming. Intraday bias is turned back to the downside for 0.9866 support first. Meanwhile, not that price actions from 1.0056 are seen as developing into a consolidation pattern. Hence, even in case of deep fall, downside should be contained by 38.2% retracement of 0.9186 to 1.0056 at 0.9724 to bring rebound.
In the bigger picture, current development suggests that the consolidation pattern from 1.0056 is extending with another leg. As long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds, we’d expect rise from 0.9186 to resume at a later stage to retest 1.0342 key resistance (2016 high). However, sustained break of 0.9724 fibonacci level will bring deeper fall, as another declining leg in the long term range pattern.
