USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0299; (P) 1.0371; (R1) 1.0414; More

USD/CHF has finally taken out mentioned 1.0352/83 resistance zone with some strength. At this point, intraday bias remains on the upside for 100% projection of 0.9634 to 1.0249 from 0.9907 at 1.0522 first. Break will bring stronger rally to 161.8% projection at 1.0902. On the downside, below 1.0328 will indicate that an intraday top is in place and bring retreat to 4 hours 55 EMA (now at 1.0277) and below.

In the bigger picture, firm break of 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) will indicate that decline from 1.1596 has completed and a medium bottom is probably in place at 0.9634 . Sustained trading above 55 days EMA (now at 1.0325) support this case too. Further rebound should then be seen to resistance zone of 1.0890 to 1.1596, but strong resistance should be seen there, at least initially. On the downside, break of 0.9995 support is needed to confirm rebound from 0.9634 has completed. Otherwise, another rise is still in favor even in case of pull back.

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