The USD/CHF pair has rejected a major resistance at 1.0074/98. Analysts at Credit Suisse look for the pair to remain capped here for a potential near-term move lower.
USD/CHF’s surge was capped at the major resistance at the trendline from 2016 at 1.0075. This strong reversal lower paired with daily RSI holding a bearish divergence continues to strengthen the case for a near-term weakness, though with the recent volatility in mind, and with an absence of a more material break lower, we stay near-term neutral for now.us
“Immediate support is seen at the recent low and the 13-day exponential average at 0.9929/13, though only a close below 0.9876 would raise more serious thoughts of the near-term risk shifting lower again.”
Above the 1.0074/98 major barrier would be seen to clear the way for strength to the highs of 2019 at 1.0226/35.