USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0686; (P) 1.0729; (R1) 1.0775; More.

USD/CHF's pull back from 1.0793 is still in progress and drops to as low as 1.0654 so far. Further decline could still be seen to 4 hours 55 EMA (now at 1.0612) but after all, downside is expected to be contained by 1.0497/0640 support zone and bring rally resumption. Above 1.0745 minor resistance will flip intraday bias back to the upside. Further break of 1.0793 will bring rally resumption to medium term trend line resistance at 1.0921 next.

In the bigger picture, medium term correction from 1.2296 should have completed with three waves down to 0.9916 already. Current rise from 0.9916 is tentatively treated as resumption of the long term up trend from 2008 low of 0.9634. Sustained break of mentioned medium term trend line resistance (now at 1.0921) will further affirm this case and should target 161.8% projection of 0.9916 to 1.0506 from 1.0131 at 1.1086 next. On the downside, break of 1.0131 support is needed to invalidate this view. Otherwise, another rise is still expected even in case of deep pullback.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box