Break of 0.9827 indicates USD/CHF’s fall from 0.9977 has resumed. Intraday bias is back on the downside for 0.9734 and below. Price actions from 1.0037 are viewed as a correction pattern. Hence, we’d we’d expect strong support from 61.8% retracement of 0.9420 to 0.1.0037 at 0.9656 to contain downside and bring rebound. On the upside, above 0.9915 resistance will turn bias to the upside for 0.9977 resistance and above instead.
In the bigger picture, range trading continues between 0.9420/1.0342. At this point, 0.9420 appears to be a strong support level. Therefore, in case of decline attempt, we don’t expect a firm break of this level. Nonetheless, strong break of 1.0342 is also needed to confirm upside momentum. Otherwise, medium term outlook will stay neutral.
