Daily Pivots: (S1) 0.9820; (P) 0.9857; (R1) 0.9914; More….
USD/CHF’s rebound from 0.9716 extends higher today but it’s staying inside near term falling channel. Intraday bias remains neutral first. Fall from 1.0128 could extend lower. Break of 0.9800 minor support will turn bias back to the downside. Further break of 0.9716 will target 0.9541 cluster support (61.8% retracement of 0.9186 to 1.0128 at 0.9546). Nevertheless, firm break of 0.9963 will suggest that the pull back from 1.0128 is completed. Near term outlook will be turned bullish for 1.0128.
In the bigger picture, current development suggests that rise from 0.9186 has possibly completed with three waves up to 1.0128 already. Decline from 1.0128 could either be correcting this move, or reversing the trend. As long as 0.9541 support holds, we’d slightly favor the former scenario, and expect another rise through 1.0128 at a later stage. However, sustained break of 0.9541 will confirm trend reversal and bring deeper fall back to 0.9186 low.
