USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0302; (P) 1.0335; (R1) 1.0369; More

USD/CHF continues to be bounded inside tight range below 1.0430 and is still struggling to take out 1.0352/83 resistance zone decisively. An intraday top is likely in place with 4 hours MACD staying below signal line. Intraday outlook is turned neutral for the moment. Below 1.0271 minor support will flip intraday bias to the downside for 4 hours 55 EMA (now at 1.0219) and below. Meanwhile, above 1.0430 will indicate rise from 0.9907 and rebound from 0.9634 has resumed for 100% projection of 0.9634 to 1.0249 from 0.9907 at 1.0522 first.

In the bigger picture, focus remains on 1.0352/83 resistance zone (50% retracement of 1.1105 to 0.9634 at 1.0370 and 38.2% retracement of 1.1596 to 0.9634 at 1.0383). Firm break of this resistance zone will indicate that that fall from 1.1596 has completed and a medium bottom is probably in place at 0.9634 . Stronger rally should then be seen to resistance zone of 1.0890 to 1.1596. However, bouncing off from this resistance, followed by a break of 0.9995 will indicate that rebound from 0.9634 has completed and will bring retest of this low.

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