USD/CHF Mid-Day Outlook

Intraday bias in USD/CHF remains neutral for the moment as it's trying to draw support from support zone of 1.0175 and 61.8% retracement of 0.9916 to 1.0506 at 1.0141. As noted before, price actions from 1.0506 are treated as correction to rise from 0.9916 only and should be contained by mentioned 1.0141/0175 support zone. On the upside, above 1.0242 minor resistance will flip intraday bias back to the upside. Further break of 1.0383 resistance will argue that such rally from 0.9919 is resuming for 1.0590 medium term support turned resistance. However, note that sustained trading below 1.0141/0175 support zone will dampen our view and bring deeper decline towards 0.9919 low instead.

In the bigger picture, medium term fall from 1.1963 has completed with five waves down to 0.9916 already, on bullish convergence condition in daily MACD. Also, the three wave consolidation from 1.2296 should also be finished too. Current rise from 0.9916 is expected to extend further to medium term trend line resistance first (now at 1.1032). Sustained trading above the trend line will affirm the case that long term rise from 2008 low of 0.9634 is resuming for another high above 1.2296. On the downside however, a break of 0.9959 support will invalidate this bullish view and argue that medium term down trend in USD/CHF is still in progress for 0.9634 low.