USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0871; (P) 1.0906; (R1) 1.0937; More

Intraday outlook in USD/CHF remains neutral for the moment as it's still bounded in tight range of 1.0800 and 1.0955. At this point, there is no confirmation that pull back from 1.1021 has completed. Below 1.0800 will probably bring another fall to 1.0712 and below. Nevertheless, downside is still expected to be contained above 1.0630 to complete the choppy fall from 1.1021. On the upside, above 1.0955 will turn intraday bias back to the upside. Further break of 1.1021 will confirm that whole rise form 1.0590 has resumed for 1.1158/1740 key resistance zone.

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 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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