USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0488; (P) 1.0548; (R1) 1.0631; More

USD/CHF retreats mildly after rise from 0.9634 extended to as high as 1.0606. At this point, intraday bias remains on the upside as long as 1.0462 minor support holds. With 100% projection of 0.9634 to 1.0249 from 0.9887 at 1.0502 taken out, next upside target will be 161.8% projection at 1.0902. On the downside, below 1.0462 will indicate that an intraday top is in place. But pull back should be contained above 1.0296 support and bring rally resumption.

In the bigger picture, firm break of 1.0352/83 resistance zone (50% retracement of 1.1105 to 0.9634 at 1.0370 and 38.2% retracement of 1.1596 to 0.9634 at 1.0383) indicates that decline from 1.1596 has completed and a medium term bottom is probably in place at 0.9634 . Sustained trading above 55 days EMA (now at 1.0341) supports this case too. Further rebound should then be seen to resistance zone of 1.0890 to 1.1596. With 38.2% retracement of 1.3283 to 0.9634 at 1.1028 inside the range, strong resistance should be seen there, at least initially. On the downside, break of 0.9995 support is needed to confirm rebound from 0.9634 has completed. Otherwise, another rise is still in favor even in case of deep pull back.

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