The USD/CHF pair did unwind the overbought condition on Friday, but maintains a small “head and shoulders” base with key resistance seen at 0.9079/95, per Credit Suisse.
Key quotes
“USD/CHF reverted lower on Friday as the market unwound the oversold condition, coming to a halt ahead of the crucial back of the broken downtrend at 0.8971. The pair has subsequently shifted into a very near-term consolidation range, however with daily MACD momentum still pointing higher, we look for strength to resume as a small ‘head and shoulders’ base is still in place.”
“Resistance is seen initially at 0.9007, then 0.9046, removal of which would expose the 61.8% retracement of the September 2020/January 2021 fall, our ‘measured base objective’ and the downtrend from early 2020 at 0.9079/95.”
“Support is seen initially at 0.8986/71, beneath which would instead ease the immediate upside bias and see a move back to 0.8974/72, ahead of the ‘neckline’ to the base at 0.8933. A sustained move beyond here would negate the base and see support thereafter at the current February low at 0.8896.”
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