USDCHF bounces of a key support
15 March 2023
The USDCHF is currently showing an interesting setup as it continues to trade within a range defined by key horizontal levels of 0.938 (yellow) as resistance and 0.91 (green) as support.
Recent news about banking problems in both the US and Switzerland has led to a flight to safe-haven assets, with both the USD and CHF seeing gains against other major currencies. While the situation with Credit Suisse has caused a drop in share prices, the USDCHF has managed to bounce off the 0.91 support level, providing a possible long-term buy signal.
To confirm this buy signal, traders should look for a candle with a long tail at the end of the week, which could indicate a reversal is likely. If this occurs, the target for the upswing would be the yellow resistance at 0.938. While the bullish scenario is still possible, a break below the 0.91 support would cancel this outlook. For now, the likelihood of a bearish move is lower, and the focus is on the potential for a long-term buying opportunity.