USD/CHF’s rally from 0.7603 resumed by breaking through 0.8205 resistance last week. Though, it lost momentum after hitting 0.8262. Initial bias is turned neutral this week for consolidations first. Downside should be contained above 0.8156 resistance turned support. On the upside, above 0.8262 will target 100% projection of 0.7760 to 0.8205 from 0.7948 at 0.8393.
In the bigger picture, rise from 0.7603 should at least be reversing the medium term trend. Focus is now on 0.8332 support turned resistance (2023 low) for confirmation. Firm break there will target 61.8% retracement of 0.9200 (2025 high) to 0.7603 at 0.8590. For now, this will remain the favored case as long as 0.7948 support holds.
In the long term picture, price action from 0.7065 (2011 low) are seen as a corrective pattern to the multi-decade down trend from 1.8305 (2000 high). It’s uncertain if the fall from 1.0342 is the second leg of the pattern, or resumption of the downtrend. But in either case, outlook will stay bearish as long as 55 M EMA (now at 0.8578) holds.
