Daily Pivots: (S1) 0.9368; (P) 0.9386; (R1) 0.9409; More…
USD/CHF’s break of 0.9339 minor support suggests that rebound form 0.9254 has completed at 0.9469 already. Intraday bias is turned back to the downside for 0.9254 first. Break will resume larger down trend to next projection level at 0.9115. Also, note again that there is no sign of trend reversal yet. Therefore, in case of another rise, we’d be cautious on strong resistance from 38.2% retracement of 1.0037 to 0.9254 at 0.9553 to limit upside and bring down trend resumption.
In the bigger picture, fall from 1.0342 is developing into a medium term down trend. Deeper decline should be seen to 100% projection of 1.0342 to 0.9420 from 1.0037 at 0.9115. Break will target 161.8% projection at 0.8545. In any case, sustained trading above 55 day EMA is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish even in case of strong rebound.
