USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0579; (P) 1.0730; (R1) 1.0819; More

USD/CHF rebounded strongly from 1.0630 to as high as 1.0906 today. The development, with fall from 1.0954 contained by 1.0590/1.0650 support zone, is consistent with the view that price actions from 1.0985 are merely consolidation to rise from 1.0590 only. Such consolidation might have completed with three waves down to 1.0630 already. Further rise is now is favor and break of 1.0954 /0985 resistance zone will bring resumption of rise from 1.0590 towards 1.1158/1740 key resistance zone next.

In the bigger picture, fall from 1.1963 is treated the third leg of the consolidation that started at 1.2296, which corrects the whole rally from 0.9634. With daily MACD staying well above signal line, such decline is tentatively treated as completed at 1.0590 and hence, stronger rise is in favor to 1.1158/1.1740 resistance zone. Nevertheless, we'd favor that such consolidation is developing into triangle pattern and hence, upside should be limited by 1.1158/1740 initially and bring one more fall before completing the consolidation. However, break of 1.1963 will serve as the first signal that whole rally from 0.9634 is resuming.

On the other hand, note that a break of 1.0590 low will indicate that fall from 1.1963 is still in progress for 1.0366, or even further to 100% projection of 1.2296 to 1.0366 from 1.1963 at 1.0033 before completing the consolidation from 1.2296.

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