USD/CHF has stabilized above key retracement support at 0.9200 after an intraday test below this level, which has likely cleared out a significant amount of positioning, leaving the uptrend in a better state to resume, the Credit Suisse analyst team briefs.
USD/CHF is holding above important retracement support at 0.9200 into the daily close
“USD/CHF saw a very concerted test of key support at 0.9200 on Wednesday. Long positioning has likely been cleared out after the intraday move below this level, and trend following indicators such as moving averages maintain a bullish ‘golden cross’, with weekly MACD staying outright bullish.”
“We stay biased towards a reversal higher from here, with resistance seen initially at 0.9282/89, above which would confirm an important low for an eventual retest of 0.9465/73 highs.”
“A clear, conclusive and closing break beneath the recent lows and the 38.2% retracement of the 2021 surge at 0.9200 would instead trigger a top and suggest a much deeper move lower. Beyond here could see the 55-day average next at 0.9176/73, where we would expect to see a temporary hold if reached.”
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