Credit Suisse discusses USD/CHF technical outlook and flags some key levels to watch for in near-term.
"USDCHF remains in a near-term consolidation post last week’s sharp reversal back higher from the key uptrend from the late March low, reinforcing the view of an extension of the rangebound environment.
Resistance is seen initially at .9721/36, then .9750/61, removal of which would negate the recent bearish ‘outside day’ and open the door to a move back to the 200-day average and recent highs at .9784/9803. A clear and closing break above here is needed to resolve the rangebound phase to the upside, with next resistance seen at .9834 initially," CS notes.
Support is seen at the important zone at .9650/38, which contains the recent lows and March uptrend. Whilst we would be alert for a potential floor here if tested again, a break would suggest a test of the lower end of the current range at .9595/80, where we would have even more confidence in the market finding a floor to maintain the range," CS adds.