USD/CHF has once again reversed higher into the close to hold above support at the rising 55-day average at 0.9214. Economists at Credit Suisse now look for a break above 0.9274 to confirm a floor is in place.
Further weakness is on the cards while below 0.9274
“With trend-following indicators all still generally pointing to the upside, with the 200-day average still rising and weekly MACD still outright bullish, we look for an eventual break above short.term resistance at 0.9274 to negate the recently highlighted top.”
“Above 0.9308/15 would then clear the way for a retest of 0.9349/70. Beyond here would still mark a very significant break higher, with little then seen in the way of meaningful resistance until the 0.9473 April high.”
“Whilst our core outlook stays bullish, we cannot rule out further corrective weakness whilst below 0.9274 and more important support if the market does manage to close below 0.9214 is at the 200-day average at 0.9139, which is expected to hold if reached.”