USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0375; (P) 1.0442; (R1) 1.0550; More

USD/CHF surges further to as high as 1.0606 in early US session on broad based dollar strength. Firm break of mentioned 00% projection of 0.9634 to 1.0249 from 0.9887 at 1.0502. Now set the stage for stronger rally to 161.8% projection at 1.0902. On the downside, below 1.0460 will indicate that an intraday top is in place and bring retreat. But pull back should be contained above 1.0296 support and bring rally resumption.

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) indicates 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) supports 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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