USD/CHF Daily Outlook

Daily Pivots: (S1) 1.2009; (P) 1.2100; (R1) 1.2191; More

USD/CHF retreats mildly after rebounding to 1.2198. Nevertheless, further rally is still in favor as long as 1.1960 support holds. As discussed before, correction from 1.2296 should have completed at 1.1828. Retest of 1.2296 high should now be seen. Break will confirm medium term up trend has resumed and will encourage rally to next target of 161.8% projection of 1.0693 to 1.1746 from 1.1208 at 1.2912. On the downside, though, below 1.1960 minor support will indicate that another fall would be seen before completing the correction from 1.2296. Still, downside is expected to be contained by 1.1746 cluster support (50% retracement of 1.1208 to 1.2296 at 1.1752) and bring strong rebound.

In the bigger picture, medium term rise from 0.9634 is still in progress and should be targeting long term resistance zone of 38.2% retracement of 1.8305 to 0.9634 at 1.2946 and 1.3283 resistance (05 high). While some interim pull back might be seen, a break below 1.1208 is needed to indicate that a medium term top is formed. Otherwise, outlook will remain bullish.

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