USD/CHF surged higher again on Monday. The pair has now broken above its downtrend from April at 0.9197, which suggests a broader upmove is starting, in the view of the Credit Suisse analyst team.
See: USD/CHF to continue rallying higher towards the 0.9274 June high – Commerzbank
Support at 0.9197/93 set to hold
“USD/CHF has now broken above the downtrend from April, today seen at 0.9197, reinforced by a renewed turn higher in daily MACD. The breakout suggests a broader move higher can take place for a move back to 0.9264/75, the July highs and the 61.8% retracement of the April/June fall.”
“Whilst the 0.9264/75 zone is likely to prove a tough barrier again, a break would open up a move to our prior Q3 objective at 0.9356/85, which is the downtrend from 2019.”
“The pair should now ideally hold onto its break above 0.9197/93 to keep a clean break higher. Next support is seen at 0.9138, with the 55-day average now at 0.9115, which we look to try and hold on any unexpected pullbacks.”
