USD/CHF Daily Outlook
Intraday bias in USD/CHF remains on the upside for the moment. Rebound from 0.8702 is still in progress, as the third leg of the consolidation from 0.8698. Further rise should be seen for 0.8952 resistance. We’d expect strong resistance from there to limit upside. Below 0.8801 minor support will turn bias back to the downside for 0.8698 again. However, note that decisive break of 0.8952 will complete a double bottom (0.8698, 0.8702) and will indicate trend reversal.
In the bigger picture, price actions from 0.9971 are still viewed as a correction pattern. Decline from 0.9838 is seen as the third leg and current development suggests that it isn’t over yet. Such correction could extend to 50% retracement of 0.7065 to 0.9971 at 0.8518 and below. We’d start to look for reversal signal below 0.8518 again. Or, break of 0.8952 will be an early sign of reversal and will turn focus back to 0.9156 resistance.
Source: actionforex
