USD/CHF rallied to 0.9146 last week before falling back. Initial consolidation bias remains neutral this week. However, further gains are expected as long as the small support at 0.9013 holds. A short-term bottom rally from 0.8818 is considered a corrective overall downtrend from 1.0146. Above 0.9146, the target is a 38.2% retracement from 1.0146 to 0.8818 to 0.9325. However, on the downside, a break above 0.9013 will turn the bias back to the downside and instead retest the 0.8818 lows.
To put it into perspective, the drop from 1.1046 (2022 high) appears to be a leg in a long-term range pattern from 1.0342 (2016 high), which has already completed at 0.8818 just before the long-term support at 0.8756. there is a possibility. A sustained trade above the 0.9058 support will turn into resistance and confirm a medium-term bottom. A further break above 0.9439 resistance will confirm a bullish trend reversal.
Longer term, we expect the long-term flattening pattern from 1.0342 (2016 high) to continue between 0.8756/1.0342. However, if the 0.8756 break continues, it will start a deeper drop towards 0.7065 (2011 low).
