Daily Pivots: (S1) 0.9892; (P) 0.9930; (R1) 0.9952; More….
USD/CHF’s sharp decline and strong break of 0.9894 support suggests that fall from 1.0067 is resuming. Intraday bias is back on the downside for 0.9866 first. Break will extend the fall from 1.0067 to 0.9787 support and possibly below. Price actions from 1.0056 are seen as a corrective pattern from fall from 1.0067 as the third leg. Hence, we’d expect strong support from 38.2% retracement of 0.9186 to 1.0056 at 0.9724 to bring rebound.
In the bigger picture, current development suggests that the consolidation pattern from 1.0056 is extending. As long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds, we’d expect rise from 0.9186 to resume at a later stage to retest 1.0342 key resistance (2016 high). However, sustained break of 0.9724 fibonacci level will bring deeper fall, as another declining leg in the long term range pattern.