USD/CHF has proved immune to the recent risk-off sentiment and has broken clearly above medium-term resistance at 0.9473/9521. Analysts at Credit Suisse stay biased higher for a move to 0.9672 next.

USD/CHF has seen an important medium-term breakout

“USD/CHF has recently broken above a cluster of medium-term levels and managed to close last week above the 200-week moving average at 0.9521. Supported by the weekly MACD also surging higher, we expect this breakout to signal further medium-term strength up to the 61.8% retracement of the 2019/2021 downtrend at 0.9672 initially.”

“Should strength persist above 0.9672, we would see scope for the upside to eventually challenge the 2020 high and the 78.6% retracement at 0.9901/9921.” 

“A quick move back below 0.9473/13 would warn of a false breakout and see scope for the market to mean-revert back to the middle of the prior range, around the 0.93/92 level.”