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 has broken the key support 0.9385 yesterday and bulls need to exercise caution now. The near-term setback from 0.9515 may be a wave [b] and the corrective rally has the potential to extend in a wave [c] if the 0.9275/0.9210 support holds. A break below however renews the bear run toward 0.9100/0.9040 in a wave C. A move above 0.9460/0.9515 could test the tough resistance at 0.9600/0.9635.