Daily Pivots: (S1) 0.9943; (P) 0.9983; (R1) 1.0015; More…
Intraday bias in USD/CHF is turned neutral again with today’s recovery. Overall, price actions from 1.0056 are seen as a corrective pattern. Deeper pull back cannot be ruled out. But we’d expect strong support from trend line (now at 0.9799) to contain downside to bring rebound. On the upside, firm break of 1.0056 will confirm rise resumption for 1.0342 key resistance.
In the bigger picture, medium term decline from 1.0342 has completed with three waves down to 0.9186. Rise from there is currently viewed as a leg inside the long term range pattern. Hence, while further rally would be seen, we’d be cautious on strong resistance from 1.0342 to limit upside. For now, further rise is expected as long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds.
