USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0511; (P) 1.0569; (R1) 1.0604; More.

USD/CHF recovers mildly after diving to 1.0512 eawrlier today. With 1.0643 minor resistance intact, correction from 1.0897 might still extend further. However, as fall from 1.0897 is treated as a correction in the larger rally only, downside is expected to be contained by the trend line support and bring strong rebound. Break of 1.0643 resistance will indicate that correction from 1.0897 has likely completed and should flip intraday bias back to the upside for 1.0809 resistance for confirmation.

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 1.0752) will further affirm this view. In such case, we'd be looking at stronger rise to 1.1963/2296 resistance zone in medium term. On the downside, however, sustained break of the rising trend line support (now at 1.0466) will argue that whole rise from 0.9916 is completed and will turn focus back to 1.0131 support instead.

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