USD/CHF Daily Outlook

Daily Pivots: (S1) 1.1234; (P) 1.1288; (R1) 1.1347; More

USD/CHF's break of 1.1209 indicates that correction from 1.1486 is still in progress and should be deeper than we originally thought. At this point, further decline is expected to next target of 1.1086 cluster support (50% retracement of 1.0693 to 1.1486 at 1.1089). On the upside, above 1.1341 will flip intraday bias back to the upside for retesting 1.1486 high. But a break there is now needed to confirm recent rise has resumed. Otherwise, consolidation from there might extend further.

In the bigger picture, prior break of 1.1416 indicates that medium term rally from 0.9634 has resumed for next two cluster resistance, 1.1596 (161.8% projection of 0.9634 to 1.0623 from 1.0010 at 1.1610) and 1.1878 (61.8% retracement of 1.3283 to 0.9634 at 1.1889). On the downside, while interim pullback might be deep, break of 1.0693 is needed to confirm that rise rise from 0.9634 has completed. Otherwise, medium term outlook will remain bullish.

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