USD/CHF posted a bullish “key reversal day” on Friday. Although mindful of potential month-end distortions, this is a potentially significant signal. Analysts at Credit Suisse stay bullish, with a break above the 0.9196 resistance needed to confirm an important low is in place for a resumption of the uptrend.
USD/CHF to confirm an important low above the 0.9196 resistance
“USD/CHF posted a bullish ‘key reversal day’ on Friday, the first candlestick reversal signal of any kind since the April correction began. This is a potentially significant signal, particularly as it occurred on the back of hold above a key cluster of medium-term supports at the 200-day average and uptrend from the 2021 lows at 0.9088/80.”
“We stay bullish, with a break above the 0.9196 resistance needed to confirm an important low is in place for a resumption of the uptrend, with the next resistance at 0.9246.”
“Our broader bullish view is based on the fact that trend following indicators such as moving averages maintain a bullish ‘golden cross’, with weekly MACD also staying outright bullish.”
“A closing break below 0.9088/80 would turn our bias lower and suggest the broader downtrend is still intact, with the next levels at 0.9031/27, then 0.8922/11, before 0.8871/62.”
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