USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0060; (P) 1.0080; (R1) 1.0111; More

USD/CHF's rebound from 0.9634 extends further today and at this point, intraday bias remains on the upside as long as 1.0047 minor support holds. As discussed before, a short term bottom is in place at 0.9634 and the current rebound could extend further to 1.0352 resistance. Though, upside should be limited there and bring another fall. On the downside below 1.0047 minor support will turn intraday outlook neutral first. Further break of 0.9866 support will indicate that rebound from 0.9634 has completed and will bring retest of this low first.

In the bigger picture, with 1.0352 resistance zone, with 50% retracement of 1.1105 to 0.9634 at 1.0370 and 38.2% retracement of 1.1596 to 0.9634 at 1.0383, remains intact, fall from 1.1596 should still be in progress. Break of 0.9634 low will confirm that such decline has resumed. Also, medium term decline from 1.3283 (05 high) is tentatively treated as resumption of the long term down trend from 1.8305 (00 high) which could extend further to 61.8% projection of 1.8305 to 1.1128 from 1.3283 at 0.8946, which is close to 0.9000 psychological support.

On the upside, however, firm break of 1.0352 resistance zone will indicate that that fall from 1.1596 has completed and a medium bottom is probably in place. Stronger rebound should than be seen to resistance zone of 1.0890 to 1.1596.

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