Daily Pivots: (S1) 1.0733; (P) 1.0789; (R1) 1.0833.

USD/CHF rebounds strongly to as high as 1.0846 so far today and the development suggests that a temporary low is in place at 1.0746 after USD/CHF draws support from 4 hours 55 EMA. Intraday bias is tuned neutral. On the upside, break of 1.0923 resistance will confirm that whole rally from 1.0434 has resumed and should target 100% projection of 1.0131 to 1.0897 from 1.0434 at 1.1200 next. On the downside, in case of another fall, we'd continue to expect strong support from 1.0699 to conclude the pull back from 1.0923 and bring rally resumption.

In the bigger picture, last week's break of 1.0897 affirm the case that medium term rise from 2009 low of 0.9916 is still in progress. Also, note that the sustained trading above medium term falling trend line allows affirm the view that whole correction from 1.2296 has completed with three waves down to 0.9916. We'll now stay bullish as long as 1.0434 support holds and expect the rise from 0.9916 to extend towards 1.1963/2296 resistance zone in medium term. However, break of 1.0434 support will mix up the outlook again.

Economic Indicators Update

GMT Ccy Events Actual Consensus Previous Revised

1:30
AUD
House Price Index Q/Q Q1
4.80%
3.20%
5.20%
5.10%

7:30
CHF
SVME-PMI Apr
 
64.5
65.5
 

7:55
EUR
German PMI Manufacturing Apr F
 
61.3
61.3
 

8:00
EUR
Eurozone PMI Manufacturing Apr F
 
57.5
57.5
 

12:30
USD
Personal Income Mar
 
0.30%
0.00%
 

12:30
USD
Personal Spending Mar
 
0.60%
0.30%
 

12:30
USD
PCE Deflator Y/Y Mar
 
2.00%
1.80%
 

12:30
USD
PCE Core M/M Mar
 
0.00%
0.00%
 

12:30
USD
PCE Core Y/Y Mar
 
1.30%
1.30%
 

14:00
USD
ISM Manufacturing Apr
 
59.8
59.6
 

14:00
USD
ISM Prices Paid Apr
 
74
75
 

14:00
USD
Construction Spending M/M Mar
 
-0.50%
-1.30%