USD/CHF Daily Outlook

Daily Pivots: (S1) 1.1546; (P) 1.1622; (R1) 1.1659; More

USD/CHF's rally resumes after brief retreat and surges to as high as 1.1746 so far. At this point, intraday bias remains on the upside as long as 1.1559 minor support holds. As discussed before, the current rise is expected to extend further to next medium term cluster resistance at 1.1878. On the downside, below 1.1559 will indicate that an intraday top is in place and bring consolidation. But downside should be contained above 1.1281 support and bring rally resumption. However, break of 1.1281 will indicate that a short term top is in place and put trend line support at 1.1015 into focus.

In the bigger picture, medium term rally from 0.9634 is still in progress. Next target is 1.1878 (61.8% retracement of 1.3283 to 0.9634 at 1.1889) after 1.1596 (161.8% projection of 0.9634 to 1.0623 from 1.0010 at 1.1610) was taken out. On the downside, sustained break of the mentioned rising trend line support (1.0010, 1.0693, now at 1.1004) is need to be the first signal that such up trend has topped out. Otherwise, medium term outlook remains bullish even in case of another pull back.

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