USD/CHF Daily Outlook

Daily Pivots: (S1) 1.1507; (P) 1.1627; (R1) 1.1774; More

As discussed before, USD/CHF's touching of 1.1499 minor support indicates that an intraday top is in place at 1.1746. Hence, intraday outlook remains neutral for the moment and some more consolidation might be seen. Though, even in case of deeper pullback, downside should be contained above 1.1281 support and bring rally resumption. Above 1.1746 will target next key medium term cluster resistance at 1.1878. However, note bearish divergence condition in 4 hours MACD. Further break of 1.1281 will indicate that a short term top is at least formed and deeper decline could then be seen to test trend line support at 1.1022.

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 1.1022) 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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