USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.1168; (P) 1.1304; (R1) 1.1398; More

USD/CHF's recovery from 1.1209 continues in early US session. As this point, we'd still expect pull back from 1.1486 to be contained by mentioned 1.1214 support. Break above 1.1357 will flip intraday bias to the upside for retesting 1.1486 high first. Break of 1.1486 will indicate rise from 1.0693 has resumed for next upside target of 1.1596 cluster resistance. On the downside, though, below 1.1214 will invalidate this view and indicate that deeper correction is underway to 1.1086 cluster support (50% retracement of 1.0693 to 1.1486 at 1.1089.

In the bigger picture, prior 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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