USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0579; (P) 1.0730; (R1) 1.0819; More

USD/CHF dived to as low as 1.0630 before turning sideway. As the pair is now sitting on important support zone of 1.0590/0650, outlook is turned neutral for the moment. On the upside, above 1.0743 minor resistance will reaffirm the case that 1.0590 is a bottom and will flip intraday bias back to the upside. Further break of 1.0897 will indicate that rise from 1.0590 is resuming for 1.1158/1740 key resistance zone next. However, break of 1.0590 low will invalidate this view and indicate that recent decline from 1.1740 is still in progress for 1.0366 support.

In the bigger picture, fall from 1.1963 is treated the third leg of the consolidation that started at 1.2296, which corrects the whole rally from 0.9634. With daily MACD staying well above signal line, such decline is tentatively treated as completed and hence, stronger rise is in favor to 1.1158/1.1740 resistance zone. Nevertheless, we'd favor that such consolidation is developing into triangle pattern and hence, upside should be limited by 1.1158/1740 initially and bring one more fall before completing the consolidation. However, break of 1.1963 will serve as the first signal that whole rally from 0.9634 is resuming. On the other hand, note that a break of 1.0590 low will indicate that fall from 1.1963 is still in progress for 1.0366, or even further to 100% projection of 1.2296 to 1.0366 from 1.1963 at 1.0033 before completing the consolidation from 1.2296.

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