USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9732; (P) 0.9754; (R1) 0.9787; More

USD/CHF’s break of 0.9797 minor resistance suggests short term bottoming at 0.9659. Intraday bias is mild on the upside for rebound to 55 day EMA (now at 0.9866). Sustained break will target 0.9975 resistance. On the downside, break of 0.9721 minor support will turn bias to the downside for 0.9659 low instead.

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. Nevertheless, break of 0.9975 resistance is needed to indicate completion of the decline from 1.0237. Otherwise, risk will stay on the downside.

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