Daily Pivots: (S1) 0.8974; (P) 0.8997; (R1) 0.9012; More….
USD/CHF is still holding above 0.8925 resistance turned support despite steep retreat from 0.9044. Intraday bias stays neutral first. Another rise will remain in favor as long as 0.8925 holds. On the upside, break of 0.9044 will resume the rebound form 0.8756 short term bottom to 38.2% retracement of 0.9901 to 0.8756 at 0.9193. However, firm break of 0.8925 will indicate that the rebound has completed, and bring retest of 0.8756 low.
In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 high). There is no clear sign of completion yet. Next target will be 138.2% projection of 1.0342 to 0.9186 from 1.0237 at 0.8639. In any case, break of 0.9295 resistance is needed to signal medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
