USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9805; (P) 0.9831; (R1) 0.9861; More…

A temporary top is formed at 0.9855 in USD/CHF just ahead of 61.8% retracement of 1.0067 to 0.9541 at 0.9866. Intraday bias is turned neutral first. Further rally is expected as long as 0.9736 minor support holds. On the upside, decisive break of 0.9866 will pave the way to retest 1.0067 high. However, break of 0.9736 will argue that the rebound from 0.9541 has completed and turn bias to the downside for deeper fall.

In the bigger picture, focus is now back on 0.9866 support turned resistance. Decisive break there will suggests that pull back from 1.0067 has completed at 0.9541. And larger rise from 0.9186 low is ready to resume. Decisive break of 1.0067 will pave the way to 1.0342 key resistance next. Meanwhile, break of 0.9541 will extend the decline but we don’t expect a break of 0.9186 low even in that case.