USD/CHF has been in larger corrective uptrend since August’11 and it could test the 1.000/1.0700 resistance on multi-month basis (watch for strong 2005 monthly resistance line). The pair had completed a wave (W) at 0.9975 (Jul’12 high) and the current wave (X) could test the strong 0.9040/0.8930 support in coming weeks where medium term bulls may fight back. The 0.9695/0.9810 resistance needs to be cleared to renew the uptrend.
The pair’s wave B corrective rally is focused now on 0.9460. If the key resistance is breached, the recovery could extend toward the tough resistance at 0.9505/0.9610. A reversal below 0.9300/0.9275 signals a triangle consolidation between 0.9460 and 0.9210. A break below 0.9210 however renews the bear run toward 0.9100/0.9040 in a wave C.