USD/CHF Daily Outlook

Daily Pivots: (S1) 1.1774; (P) 1.1825; (R1) 1.1927; More

USD/CHF's really extended further to as high as 1.1894, meeting mentioned target of 1.1878 cluster resistance as expected. At this point, further rise is still expected as long as 1.1721 minor support holds. Sustained break of 1.1878 will target 100% projection of 1.0693 to 1.1746 from 1.1208 at 1.2261 next. On the downside, below 1.1721 minor support will turn intraday outlook neutral first. Considering bearish divergence condition in 4 hours MACD, further break of 1.1546 support will confirm that a short term top is in place and put focus back to trend line support at 1.1192.

In the bigger picture, medium term rise from 0.9634 is still in progress and has met target of 1.1878 (61.8% retracement of 1.3283 to 0.9634 at 1.1889). As discussed before, sustained trading above will add strong evidence to the case of a long term reversal and encourage further medium term rally to 1.3283 high. On the downside, break of the mentioned trend line support (1.0010, 1.0693, now at 1.1192) is needed to be the first indication that such medium term rally has completed.

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