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USD/CHF - Slightly Bullish Bias Despite Strong Bearish Session Candle

Last week, USD/CHF retreated from the 0.9903 high on the month to 0.9676 in one sharp session. Price might stay in this range for the short-term unless maybe some fundamental bumps it in either direction a bit .

USD/CHF 8/16 1H Chart
(click to enlarge)

The 1H USD/CHF chart shows price making another smaller range between 0.9727 and 0.9797. Now, in the medium-term, the USD/CHF has been bullish, with upside risk to the high on the year at 1.0127. However, as the daily chart shows, that dip last week was pretty strong and might small that rally a bit if not push to back lower for a period of correction. 

If price can push above 0.9800, let's watch out for a bullish attempt. I don't trust only a single strong bearish candle. The bullish momentum is still there in the medium-term. Therefore, a break above 0.98 opens up the 0.9903 high on the month, with potential upside to 1.0127.

USD/CHF Daily Chart 8/17
(click to enlarge)

Looking at the daily chart, other than the strong bearish candle, the technical conditions are still bullish. Price is above the moving averages and above a pair of rising trendlines. The RSI is in the bullish territory, and not overbought. The next key resistance levels we can see are 1) the psychological level of 1.00 and the 1.0127 high on the year, If you play it right, you can be on for a long ride.

If USD/CHF falls below 0.9727 however, we might see further correction in at least in the short-term. In this bearish correction scenario, there is downside risk to the 0.9545 support/resistance pivot area as you can see in the daily chart above.