USDCHF has been in larger corrective uptrend since August’11 and it could test the 0.9700/1.0070 resistance on multimonth basis. The pair has completed a wave A at 0.9600 (Jan’12 high) and the medium term weakness (wave B) could retest the swing low at 0.8565 before renewing the uptrend in a wave C. A break below however implies deeper retracement toward 0.8330/0.8235.
The pair has been in consolidation mode since making a low at 0.8930. The current consolidation may be unfolding in a triangle pattern within the range of 0.9250/0.9000. Immediate term focus is now on 0.9175 which may cap strength now. A move above would shift the focus back to 0.9210/0.9250. A reversal below 0.9100/0.9040 retests the swing low at 0.9000 which should hold now. A break below however targets 0.8950/0.8930 next.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)