Daily Pivots: (S1) 0.9828; (P) 0.9892; (R1) 0.9944; More…
USD/CHF breached 0.9848 support but recovered quickly. At this point, we’d still expect strong support from 0.9848 to complete the corrective fall from 1.0128 to bring rebound. On the upside, break of 0.9989 will turn bias back to the upside for retesting 1.0128 high. However, sustained break of 0.9848 will bring deeper fall to 61.8% retracement of 0.9541 to 1.0128 at 0.9765.
In the bigger picture, current development suggests that the medium term rally from 0.9186 hasn’t completed yet. Break of 1.0128 will target 1.0342 key resistance next (2016 high). On the downside, firm break of 0.9848 support will dampen this bullish view and turn focus back to 0.9541 key support instead.
