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.
A wave [b] corrective rally from 0.8930 (Feb 24 low) has been unfolding in a double zigzag wave pattern. Immediate term resistance is at 0.9300. A move above tests the tough 0.9340/0.9410 resistance. Bears may attempt to take control at the tough resistance area. The 0.9210/0.9180 support looks to hold on weakness. A reversal below 0.9180/0.9040 however renews bears to retests the swing low at 0.8930 initially. Near term longs may be held with stop at 0.9174.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)