The USD/CHF pair has held below resistance at 0.8918/20 as expected, with further ranging expected, the Credit Suisse analyst team reports.
“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.”
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