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Daily Pivots: (S1) 0.9857; (P) 0.9882; (R1) 0.9900; More...

Intraday bias in USD/CHF remains neutral for the moment. On the downside, below 0.9817 will resume the decline from 0.9951 to retest 0.9695 low first. On the upside, above 0.9951 will extend the rebound from 0.9695. In that case, upside should be limited by 61.8% retracement of 1.0237 to 0.9695 at 1.0030.

In the bigger picture, up trend from 0.9186 (2018 low) should have completed at 1.0237 already. Deeper decline would be seen to 61.8% retracement of 0.9186 to 1.0237 at 0.9587 and below. For now, USD/CHF is seen as in long term range pattern between 0.9186 and 1.0342. Hence, we'd pay attention to bottoming signal below 0.9587. However, sustained break of 1.0014 will revive medium term bullishness and turn focus back to 1.0237 high.

Pivot (invalidation): 0.7005

Our preference Long positions above 0.7005 with targets at 0.7040 & 0.7060 in extension.

Alternative scenario Below 0.7005 look for further downside with 0.6995 & 0.6980 as targets.

Comment The RSI calls for a rebound.

Pivot (invalidation): 1.3060

Our preference Short positions below 1.3060 with targets at 1.3035 & 1.3015 in extension.

Alternative scenario Above 1.3060 look for further upside with 1.3075 & 1.3090 as targets.

Comment The upward potential is likely to be limited by the resistance at 1.3060.

Pivot (invalidation): 0.9880

Our preference Short positions below 0.9880 with targets at 0.9835 & 0.9815 in extension.

Alternative scenario Above 0.9880 look for further upside with 0.9905 & 0.9925 as targets.

Comment The RSI is bearish and calls for further downside.

Pivot (invalidation): 107.95

Our preference Short positions below 107.95 with targets at 107.65 & 107.40 in extension.

Alternative scenario Above 107.95 look for further upside with 108.15 & 108.30 as targets.

Comment A break below 107.65 would trigger a drop towards 107.40.

Pivot (invalidation): 1.2415

Our preference Long positions above 1.2415 with targets at 1.2455 & 1.2485 in extension.

Alternative scenario Below 1.2415 look for further downside with 1.2380 & 1.2340 as targets.

Comment The RSI advocates for further upside.

Pivot (invalidation): 1.1220

Our preference Long positions above 1.1220 with targets at 1.1255 & 1.1265 in extension.

Alternative scenario Below 1.1220 look for further downside with 1.1210 & 1.1200 as targets.

Comment The RSI is bullish and calls for further upside.

The precious metal was once again seen rallying as price touched a new six-year high briefly at 1426 an ounce. The gains came following reports of a lack of progress on the trade talks between the US and China. The US economic data on housing was also disappointing leading to a modest risk-on sentiment.

XAUUSD Forms an Ascending Triangle

Gold prices edged higher, once again testing the previously established resistance levels near 1423. In the process, price action has formed an ascending triangle pattern. A breakout above the resistance could indicate further gains in the near term. The minimum upside is seen near the 1445 level. To the downside, if the resistance fails, we expect gold to find support off the minor rising trend line.

WTI Crude oil prices fell after the US. Energy Information Administration reported a higher than expected inventory. US crude oil stockpiles fell 3.12 million. This was more than the estimates of a 3.6 million decline in inventory. The data was shrugged aside as initial news reports indicated that Tehran was dropping its nuclear program, which was later denied.

WTI Breaks Below Key Support Level

The declines in oil prices continue for the third consecutive day. Price broke past the previously established support level near 57.50. While attempting to recover the losses, if resistance forms near this level, we expect oil prices to drop further. The next main support is at the 54.42 level.

Inflation data for the eurozone showed that consumer prices edged higher. The headline inflation rate rose 1.3% on the year, beating estimates of a 1.2% increase.

The core inflation rate also nudged higher, rising 1.1%. Meanwhile, the European Parliament confirmed the appointment of Ursula Von der Leyen as the next Chairman of the European Commission, while Christine Lagarde was formally nominated as the next ECB Chairperson.

EURUSD Pares Losses, but Trades Flat

The currency pair recovered from the losses set earlier this week. However, price action continues to trade flat as the pair approaches the support/resistance level of 1.1250. With the new range formed between 1.1250 and 1.1188, we expect price to breakout from this range to establish further direction.