USD/CHF Daily Outlook

USD/CHF Daily Outlook

Daily Pivots: (S1) 0.9343; (P) 0.9434; (R1) 0.9487; More...

Intraday bias in USD/CHF remains mildly on the downside and the correction pattern from 0.9566 might extend lower. But at this point, we'd expect downside to be contained by 50% retracement of 0.9021to 0.9566 at 0.9294 and bring another rally through 0.9566. However, sustained break of 0.9294 will raise the chance that rebound from 0.9021 is finished and will bring deeper decline back to this support level.

In the bigger picture, medium term rebound from 0.7065 is viewed as a corrective move and should have completed after hitting 0.9916 resistance (61.8% retracement of 1.1730 to 0.7065 at 0.9948). Price actions from 0.9971 are expected to develop into a sideway pattern. That is, rise from 0.9021 would have a test on 0.9971 and have another fall before resuming the larger up trend. While it's a bit remote, we'd like to point out the possibility of a head and should top pattern (ls: 0.9594; h: 0.9971; rs: 0.9566) and a break of 0.9021 support will turn medium term outlook bearish.