USD/CHF’s fall from 0.9273 resumed last week and reached as low as 0.9037. The development also affirm that rebound form 0.8925 has completed. Initial bias stays on the downside this week for retesting 0.8925 support. On the upside, above 0.9116 support turned resistance will mix up the near term outlook and turn intraday bias neutral first.
In the bigger picture, failure to sustain above 55 week EMA (now at 0..9183) affirms medium term bearish in USD/CHF. Break of 0.8925 support should resume the whole decline form 1.0342 (2016 high) through 0.8756 low. For now, risk will stay on the downside as long as 0.9273 resistance holds, in case of rebound.
In the long term picture, price actions from 0.7065 (2011 low) are currently seen as developing into a long term corrective pattern, at least until a firm break of 1.0342 resistance.
