USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0452; (P) 1.0538; (R1) 1.0595; More

USD/CHF's break of 1.0422 support indicates that rise from 0.9995 has likely completed at 1.0623 with bearish divergence conditions in 4 hours MACD and RSI. Also, it is an alert that whole rebound from 0.9634 has completed too. At this point, intraday bias will remain on the downside as long as 1.0498 minor resistance holds. Further fall should be seen to lower channel support (now at 1.0167) first. Break will put 0.9995 support into focus. On the upside, above 1.0498 will turn intraday outlook neutral first.

In the bigger picture, a medium term bottom is in place at 0.9634. Subsequent rally from there is still treated as correction to whole medium term down trend only. Break of 0.9995 will confirm that such rebound has completed and will bring deeper fall to retest 0.9634 low. However, strong rebound above 0.9995, and break of 1.0623 resistance will indicate that rise from 0.9634 is still in force towards resistance zone of 1.0890 to 1.1596. Though, with 38.2% retracement of 1.3283 to 0.9634 at 1.1028 inside the range, strong resistance should be seen there.

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