USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0012; (P) 1.0034; (R1) 1.0048; More

USD/CHF’s break of 0.9968 suggests that correction from 1.0094 short term top has resumed. Intraday bias is turned back to the downside for 38.2% retracement of 0.9541 to 1.0094 at 0.9883. For now, we’d expect strong support from there to contain downside to bring rebound. Rise from 0.9541 is still in favor to resume. Break of 1.0094 will target 1.0342 key resistance next. However, decisive break of 0.9848 support will indicate reversal and turn outlook bearish.

In the bigger picture, the pullback from 1.0067 has completed at 0.9541 already. And rise from 0.9186 is likely resuming. Firm break of 1.0067 will pave the way to retest 1.0342 key resistance. We’d be cautious on strong resistance from there to limit upside to bring another medium term fall to extend long term range trading. However, firm break of 0.9848 near term support will dampen this view and bring deeper decline back to 0.9541 support and possibly below.

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