USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0607; (P) 1.0641; (R1) 1.0702; More.

Intraday bias in USD/CHF remains on the upside for the moment and current rally is expected to continue towards medium term trend line resistance at 1.0926 next. On the downside, below 1.0645 minor support will turn intraday bias neutral and bring consolidation. But break of 1.0497 support is needed to indicate that USD/CHF has topped out. Otherwise, outlook will remain bullish even in case of retreat.

In the bigger picture, medium term fall from 1.1963 has completed with five waves down to 0.9916 already, on bullish convergence condition in daily MACD. Also, the three wave consolidation from 1.2296 should be finished too. Current rise from 0.9916 is expected to extend further to medium term trend line resistance first (now at 1.0926). Sustained trading above the trend line will affirm the case that long term rise from 2008 low of 0.9634 is resuming for another high above 1.2296. On the downside however, a break of 1.0131 support will invalidate this bullish view and argue that medium term down trend in USD/CHF is still in progress for another low below 0.9916.

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