USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0821; (P) 1.0873; (R1) 1.0916; More

Not change in USD/CHF's outlook as the pair is still bounded in tight range below 1.0923. With an intraday top in place, further some more sideway trading could still be seen. Nevertheless, consolidation should be relatively brief as long as 1.0741 minor support holds. Above 1.0923 will indicate recent rise has resumed for 1.0999/0128 medium term fibo resistance. On the downside, below 1.0741 will indicate that a short term top is possibly in place and bring correction to 4 hours 55 EMA (now at 1.0671). But downside should be contained well above 1.0403 resistance turned support and bring another rise.

In the bigger picture, break of 1.0623 resistance confirms that medium term rise from 0.9634 has resumed and is targeting next important cluster resistance at 1.0999/0128 (100% projection of 0.9634 to 1.0623 from 1.0010 at 1.0999, 38.2% retracement of 1.3283 to 0.9634 at 1.1028). At this moment, there is no confirmation of the completion of whole medium term down trend from 1.3283 (05 high) yet. The lack of clear impulsive structure of the rise from 0.9634 is not giving us much hint neither. Nevertheless, sustained break of mentioned 1.0999/0128 will serve as an important signal that downtrend from 1.3283 has indeed completed and will bring stronger rally to next cluster key resistance level at 1.1878. Meanwhile, while some deep pull back might be seen, a break below 1.0010 support is still needed to confirm rise from 0.9634 has finished. Otherwise, further rally is still in favor after pullback.

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