Daily Pivots: (S1) 0.9080; (P) 0.9115; (R1) 0.9173; More…
USD/CHF’s break of 0.9151 minor resistance suggests short term bottoming at 0.9056, on bullish convergence in 4 hour MACD. Intraday bias is turned back to the upside for 4 hour 55 EMA (now at 0.9203) and above. At this point, we’d expect upside to be limited below 0.9376 support turned resistance. On the downside, break of 0.9056 will extend recent down trend form 0.9901.
In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 low). Current development suggests that such pattern is still extending. Sustain trading below 100% projection of 1.0342 to 0.9186 from 1.0237 at 0.9081 will pave the way to 138.2% projection at 0.8639. On the upside, break of 0.9376 resistance is needed to be the first sign of medium term bottoming.
