USD/CHF: Resistance at 0.8918/20 caps to keep the risks directly lower – Credit Suisse
|The USD/CHF pair has held below resistance at 0.8918/20 as expected, with further ranging expected, the Credit Suisse analyst team reports.
Key quotes
“USD/CHF was capped yesterday below 0.8918/20 as expected, however, the risk of a base and a deeper setback is growing. Nevertheless, we stick with our base case that this level will hold and the core bear trend to take over again post further sideways ranging, in line with the very large top from 2020 that remains in place.”
“We see support initially at 0.8850/40, then 0.8723/21, ahead of the recent low at 0.8758. Removal of here would reassert the core bear trend and open the door to a move to a major psychological barrier at 0.8703/8699.”
“The December highs at 0.8918/20 remain crucial as a break would see a small intraday ‘head and shoulders’ base completed to open up further upside, with the next level at the 55-day average at 0.8974/83, then 0.9027/28.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.