FXStreet reports that USD/CHF posted a small bullish “hammer” yesterday from the range lows at 0.8930/25. However, analysts at Credit Suisse suggest that only a move above 0.9049/55 would complete a base.

“USD/CHF fell to the bottom of the range at 0.8930/25 yesterday, before reversing higher to post a small bullish ‘hammer’, with a growing RSI divergence and daily MACD cross still in place. We, therefore, stay biased towards a move higher, with first resistance at 0.9012, then 0.9048/55, above which confirm a base and open up a move back to the 200-day average at 0.9072, then 0.9098.” 

“The 0.9072, then 0.9098 levels need to cap to keep the broader, medium-term risks lower in our view, however, it’s worth noting that the potential ‘measured base objective’ projects a move well beyond here.” 

“Our broader bias stays lower whilst below 0.9072/98 and our base case is still that the market will find a cap here and turn back lower."