Over the next few months, the USD/CHF is projected to continue its upward trend. According to Credit Suisse economists, this will be considered as a move higher inside a bigger range unless the broader USD grounds out.
“We remain prejudiced toward a direct move to the confirmed decline at 0.9417/73, which remains a critical medium-term inflection point,” says the analyst.
“Longer term, the market is breaking below flat averages on a regular basis, and the weekly MACD is bouncing around zero, indicating that the market is currently in a broad range bound phase. However, if the broader USD bases out, we can expect a trending phase and a break over 0.9417/73, raising our primary aim to 0.9672.”
“A break below 0.9142/33 would signal a return below 0.9081/55 in the immediate term. Only a break below this level would eliminate the near-term upside risks, with the next support level at 0.8925.”/n
