USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0078; (P) 1.0112; (R1) 1.0147; More.

USD/CHF breached 1.0064 briefly but recovered since then. Intraday bias remains neutral and consolidations from 1.0064 is likely extending further for a while. Another fall is still expected with 1.0237 resistance intact. But we're anticipating strong support there to contain downside, at least initially, and bring rebound. However, sustained trading below parity will pave the way to 0.9916 key support level. On the upside, break of 1.0237 resistance 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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