Daily Pivots: (S1) 0.9122; (P) 0.9158; (R1) 0.9180; More….
USD/CHF retreats after forming a temporary top at 0.9192, just ahead of 38.2% retracement of 0.9901 to 0.8756 at 0.9193. Intraday bias is turned neutral for some consolidations first. But further rally is expected as long as 0.9044 resistance turned support holds. Sustained break of 0.9193 will target 0.9295 resistance. Firm break there will carry larger bullish implications and target 61.8% retracement at 0.9464 next.
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. Firm break of 0.9295, though, will be an early sign of medium term bullish reversal.
