USD/CHF stayed in consolidation above 0.9009 last week and outlook is unchanged. Initial bias remains neutral this week first. As long as 0.9197 resistance holds, outlook remains bearish for further fall. Break of 0.9009 will resume larger down trend for 100% projection of 1.0237 to 0.9181 from 0.9901 at 0.8845. On the upside, though, break of 0.9197 resistance will indicate short term bottoming and bring stronger rebound.
In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 low), which is still extending. Sustained 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.
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.
