USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0806; (P) 1.0837; (R1) 1.0868; More.

No change in USD/CHF's outlook. Retreat from 1.0923 is still in progress and further decline cannot be ruled out. But still, we'd expect downside to be contained by 1.0699 support and bring rally resumption. Sustained break of 1.0923 will confirm that whole medium term rise from 0.9916 has resumed. In such case, next target will be 100% projection of 1.0131 to 1.0897 from 1.0434 at 1.1200.

In the bigger picture, as noted before, the three wave corrective structure of the fall fro 1.0897 to 1.0434 affirmed the view that whole rally from 0.9916 is still in progress. USD/CHF's strong break of medium term falling trend line also affirms the view that whole correction from 1.2296 has completed with three waves down to 0.9916. Break of 1.0897 will confirm rally resumption and we should then be seeing another medium term rise towards 1.1963/2296 resistance zone. On the downside, though, break of 1.0434 will invalidate this view and turn outlook mixed.

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