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USD/CHF: Bullish Intraday Reversal Near Its Key Support
USD/CHF made a bullish intraday reversal (hammer) yesterday near its key support at 0.8800. A short-term rebound is likely. An hourly resistance stands at 0.8872 (27/02/2014 low). However, a break of the resistance at 0.8930 (26/02/2014 high, see also the declining trendline) is needed to negate the current bearish trend.
From a longer term perspective, the structure present since 0.9972 (24/07/2012) is seen as a large corrective phase which has potentially reached completion. The support area defined by 0.8931 (24/02/2012 low) and 0.8833 favours a potential medium-term base formation. However, a decisive break of this zone would open the way for a further decline towards the next key support at 0.8568 (27/10/2011 low).