USD/CHF’s strong rebound and decisive break of the near term falling channel suggests that corrective pull back from 1.0128 has completed at 0.9716 already. Initial bias remains on the upside this week. Firm break of 0.9963 will confirm this bullish case and target retesting 1.0128 high. Also, in case of retreat, break of 0.9856 is needed to confirm completion of the rebound. Otherwise, further rise will remain in favor.
In the bigger picture, USD/CHF drew strong support from medium term trend line and rebounded. That suggests rise from 0.9186 is still in progress. Break of 0.9963 will affirm this bullish case. Further break of 1.0128 will confirm up trend resumption and target 1.0342 key resistance. Nevertheless, break of 0.9716 will dampen this bullish view and at least bring deeper fall to 0.9541 key support.
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.
