Daily Pivots: (S1) 0.9905; (P) 0.9931; (R1) 0.9963; More…
Intraday bias in USD/CHF remains neutral at this point. Focus stays on 0.9977 minor resistance. Break there will argue that corrective pull back from 1.0056 has completed already. Intraday bias will then be turned back to the upside for retesting 1.0056 high first. In case of another fall, we’d expect strong support from trend line (now at 0.9848) to contain downside and bring rebound. However, sustained break of the trend line will argue that it’s a larger scale correction and will target 0.9724 fibonacci level.
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.
