USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9329; (P) 0.9441; (R1) 0.9559; More…

USD/CHF’s rebound form 0.9181 is still in progress, but we’d still expect strong resistance from 0.9613, and 61.8% retracement of 0.9484 to 0.9181 at 0.9593 to limit upside. Break of 0.9321 minor support will turn bias to the downside to bring retest of 0.9181 low. Break will resume larger down trend from 1.0237. However, sustained break of 0.9613 will indicate bullish reversal and target 0.9484 resistance and above.

In the bigger picture, decline from 1.0237 is seen as the third leg of the pattern from 1.0342 (2016 low). As long as 0.9613 support turned resistance holds, for 100% projection 1.0342 to 0.9186 from 1.0237 at 0.9081. However, firm break of 0.9613 will suggest that 0.9186 key support (2018 low) was defended. USD/CHF should have then started another rising leg in the long term range patter, towards resistance zone of 1.0237 and 1.0342 (2016 high).