USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0432; (P) 1.0529; (R1) 1.0593; More.

As noted before, USD/CHF's recovery from 1.0330 should have finished at 1.0624 and the development suggests that 1.0330 is not the bottom yet. Intraday bias is cautiously on the downside for the moment. Break of 1.0330 will target lower trend line support (now at 1.0030). On the upside, break of 1.0624/0639 resistance will revive that case that fall from 1.1729 is completed and will bring stronger rebound to 38.2% retracement of 1.1729 to 1.0330 at 1.0864 next.

In the bigger picture, USD/CHF is possibly in the process of forming a medium term sideway pattern that started at 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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