USD/CHF sets for a correction higher to 0.9162 – Credit Suisse

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USD/CHF has established a near-term bull “wedge” after holding psychological support at 0.9000, opening the door to a correction higher to 0.9162 initially, the Credit Suisse analyst team reports.

Key quotes

“USD/CHF has held key psychological support at 0.9000 with RSI momentum not confirming the latest move lower and the subsequent sharp recovery has seen a bull ‘wedge’ established to raise the prospect of a correction higher.” 

“Resistance for a recovery is seen at 0.9123/28 initially, above which should add weight to this view with resistance then seen next at 0.9140, then 0.9162. Bigger picture we see scope for a move to the August high and 55-day average at 0.9241/63, but with this expected to cap the recovery and for the broader ear trend to then resume.”

“Support is seen at 0.9055, below which can see a fall back to 0.9000/0.8999. An eventual move below here can clear the way for a test of support at 0.8875.

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