USD/CHF broke out of a small intraday bullish “wedge” continuation pattern as the USD strengthened vs most pairs on Monday. This should trigger a break above the recent 0.9240 high and a move to next resistance at 0.9264 this week, the Credit Suisse analyst team reports.
Next key resistance seen at 0.9264, then 0.9356
“USD/CHF pushed higher yesterday and broke above first resistance at 0.9214, which should open up a move to 0.9264 next, which is the 61.8% retracement of the Q2 fall.”
“Bigger picture, we believe the recent break above the 200-day average turned the risks higher within the 2021 range over the next 1-2 months, reinforced by the cross into positive territory for daily MACD. With this in mind, the next resistance above 0.9264 is seen at 0.9300/05. Thereafter, a move to the medium term downtrend at 0.9428/41 seems very likely.”
“Near-term support stays at 0.9142/33, then 0.9101/00 and at most, the 0.9073 200-day average, which we look to hold to keep the 1-month risks higher (if reached). Below here would leave the market back in a choppy range bound phase.”
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