USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.1340; (P) 1.1413; (R1) 1.1549; More

USD/CHF's break of 1.1367 minor support argues that a short term top is possibly in place at 1.1486 with bearish divergence condition in 4 hours MACD and RSI. Further pull back is now in favor towards 1.1214 support but downside should be contained there and bring rally resumption. On the upside, above 1.1486 will indicate that rise from 1.0693 has resumed for next upside target of 1.1596 cluster resistance.

In the bigger picture, break of 1.1416 indicates that medium term rally from 0.9634 has resumed for next two cluster resistance, 1.1596 (161.8% projection of 0.9634 to 1.0623 from 1.0010 at 1.1610) and 1.1878 (61.8% retracement of 1.3283 to 0.9634 at 1.1889). On the downside, while interim pullback might be deep, break of 1.0693 is needed to confirm that rise rise from 0.9634 has completed. Otherwise, medium term outlook will remain bullish.

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