USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0402; (P) 1.0454; (R1) 1.0528; More

Intraday bias in USD/CHF remains neutral for the moment. As noted before a short term top might be in place at 1.0506 with mild bearish divergence condition in 4 hours MACD. Some more retreat could be seen to 4 hours 55 EMA (now at 1.0322). Nevertheless, downside should be contained well above 1.0175 resistance turned support and bring rally resumption. Above 1.0506 will target medium term support turned resistance at 1.0590 next.

In the bigger picture, the break of 1.0337 resistance last week and the sustained trading above 55 days EMA confirms that case that a medium term bottom is in place at 0.9916. In other words, whole fall from 1.1963 should have completed already. Also, the three wave consolidations from 1.2296 should also be finished too. Further rise should be seen to medium term trend line resistance (now at 1.1143) next and sustained break there will indicate that whole rise from 0.9634 is resuming for another high above 1.2296. On the downside however, a break of 0.9959 support will invalidate this bullish view and argue that medium term down trend in USD/CHF is still in progress for 0.9634 low.

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