USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0376; (P) 1.0417; (R1) 1.0458; More

USD/CHF continues to engage in tight sideway trading below 1.0460 minor resistance. Outlook is unchanged. further decline could still be seen as there is no confirmation of end of the fall from 1.0539 yet. Nevertheless, as long as 1.0301 support holds, rise from 1.0147 is still expected to extend further. As discussed before, prior break of inner falling trend line as well as 1.0526 resistance indicates that fall from 1.0623 has completed with three waves down to 1.0147. The corrective nature suggests that whole rebound from 0.9634 is still in progress. Above 1.0460 minor resistance will turn intraday bias back to the upside. Break of 1.0623 resistance will confirm this case and bring rise towards 1.0890 medium term support turned resistance. On the downside, below 1.0301 will dampen this view and turn outlook neutral first.

In the bigger picture, a medium term bottom is in place at 0.9634. Subsequent rally from there is still treated as correction to whole medium term down trend only. Though, the corrective nature of the fall from 1.0623 to 1.0147 argues that such rally is still in progress. Break of 1.0623 resistance will confirm this case and bring further rise towards resistance zone of 1.0890 to 1.1596, with 38.2% retracement of 1.3283 to 0.9634 at 1.1028 inside the range, before completion. On the downside, break of 0.9995 support is still needed to indicate that this rise from 0.9634 has completed.

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