USD/CHF dropped to as low as 0.9840 last week but drew support from 0.9848 support and rebound. The development affirmed the case that price action from 1.0128 are merely a correction, and larger rise from 0.9541 is in progress. Intraday bias is neutral for now. On the upside, break of 0.9989 resistance will argue that such correction is completed. Intraday bias will be turned back to the upside for retesting 1.0128 high. In case of another dip, downside should be contained by 0.9848 to bring rebound.
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.
In the long term picture, price actions from 0.7065 (2011 low) are not clearly impulsive yet. Thus, we’ll treat it as developing into a corrective pattern, at least, until a firm break of 1.0342 resistance.
