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 0.9655/0.9810 resistance needs to be cleared to renew the uptrend.
The pair is attempting a corrective rally from 0.9235 with daily MACD has been turning higher. Near-term strength may be a wave B. Upside focus is now on the down trend line from July, which is likely to give way for further strength. A break above 94.00/94.40 could target 0.9500/0.9525 next. The 0.9275/0.9235 support looks to hold now on weakness. A reversal below however renews bears for 0.9100/0.9040 next. The 0.9610/0.9655 resistance should remain as tough barrier to keep bears alive.