USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0733; (P) 1.0877; (R1) 1.1122; More

USD/CHF retreats mildly after rising to as high as 1.1021. Though, intraday bias remains on the upside as long as 1.0836 minor support holds. Prior break of 1.0985 resisteance indicates that rebound from 1.0590 has resumed. Further rally should be seen to 1.1158/1740 key resistance zone next. On the downside, below 1.0836 will turn intraday outlook neutral and bring consolidation. But downside should be contained above 1.0630 support and bring rally resumption.

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 at 1.0590 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.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box