USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0092; (P) 1.0137; (R1) 1.0167; More.

Intraday bias in USD/CHF remains neutral for the moment as it's still staying inside tight range above 1.0064. Some more consolidations could still be seen but even in case of another recovery, upside should be limited below 1.0330 support turned resistance and bring another fall. Below 1.0064 will target parity next. Note that we'd anticipate strong support at around parity to contain downside, at least initially. However, sustained trading below parity will pave the way to 0.9916 key support level. On the upside, break of 1.0330 will indicate that a short term bottom is at least formed and will bring stronger rebound to 1.0624/0639 resistance zone.

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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