Search ForexCrunch

The USD/CHF pair maintains its small “head and shoulders” base and a deeper setback is now expected, with key resistance seen at 0.9027/28, analysts at Credit Suisse appraise.

Key quotes

“USD/CHF saw a clear break above the crucial downtrend from September 2020 and psychological inflection point at 0.9000 to suggest further near-term strength is likely as a small ‘head and shoulders’ base is still in place.” 

“With daily MACD momentum also still breaking higher, we keep our bias for further near-term strength in place and now look for a test of 0.9027/28, which is a cluster of medium-term retracement levels and where we would expect to see a pause at first. However, it is worth noting that the ‘measured base objective’ is seen much higher at 0.9090/95.” 

“Support is seen initially at 0.8981/71, beneath which would ease the immediate upside bias and see a move back to 0.8974/72, ahead of the ‘neckline’ to the base at 0.8932. A sustained move beyond here would hint at a false breakout higher and question the base. Support is seen thereafter at yesterday’s low at 0.8896.”