Daily Pivots: (S1) 1.0175; (P) 1.0190; (R1) 1.0205; More…
USD/CHF drops sharply in early US session but stays above 1.0130 minor support. Intraday bias remains neutral first. We’d still expect strong support from 1.0130 to contain downside to bring rise resumption. Break of 1.0237 will resume larger up trend to 1.0342 key resistance. However, sustained break of 1.0130 will confirm short term topping. In that case, deeper pull back would be seen back to 55 day EMA (now at 1.0053) and below.
In the bigger picture, medium term up trend from 0.9186 is extending. Current rise should target 1.0342 resistance next. For now, we’d be cautious on strong resistance from there to limit upside, until we see medium term upside acceleration. On the downside, break of 0.9879 support is needed to indicate reversal. Otherwise, outlook will stay bullish in case of deep pull back.
