USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0444; (P) 1.0499; (R1) 1.0540; More.

USD/CHF's consolidation from 1.0399 is still in progress and another rise cannot be rueld out. But still, short term outlook remains bearish as long as 1.0674 resistance holds and recent fall from 1.1729 is still in favor to continue. Below 1.0481 will flip bias back to the downside. Break of 1.0394 will target outer trend line support (0.9634, 0.9916, now at 1.0020). However, considering bullish convergence condition in 4 hours MACD, break of 1.0674 will suggest that 1.0399 is at least a short term bottom and should bring stronger rebound to 55 days EMA (now at 1.0830).

In the bigger picture, USD/CHF is possibly in the process of forming a medium term sideway pattern that started as the long term bottom of 0.9634 (2008 low). The pair will continue to stay in converging range of 0.9634/1.2296 for a while. A break of either 0.9916 support or 1.1729 resistance is needed to indicate that USD/CHF is back into a directional trend. Otherwise, medium term outlook will remain neutral.

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