USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0717; (P) 1.0817; (R1) 1.0883; More

At this point, intraday bias in USD/CHF remains mildly on the upside and further rally is in favor to 1.0955. Break will target 1.1021 next. As mentioned before, whole rally from 1.0590 should till be in progress and break of 1.1021 will confirm resumption of such rally and should then target 1.1158/1740 key resistance zone. On the downside, below 1.0750 will indicate that consolidation from 1.1021 is still in progress with risk of another fall to 1.0712 and below. But after all, downside is still expected to be contained above 1.0630 support to complete the choppy fall from 1.1021.

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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