The USD/CHF pair has been capped below the 200-day average at 0.9082 as expected. Economists at Credit Suisse look for a turn back lower from here.
The 200-day average at 0.9082 caps
“USD/CHF remains capped below the 200-day average and uptrend from the 2021 lows at 0.9082/9119 as expected and we look for a deeper swing lower from here, as the recent break below his level suggested that the broader downtrend has resumed.
“The next support is seen at last week’s low at 0.8985, then 0.8922/10, before 0.8871/62, which is an important price low. A test of the 2021 low at 0.8757 now seems increasingly likely given the deteriorating trend following setup.”
“Resistance stays at the 200-day average at 0.9082/9119, which should now ideally cap to keep the risks directly lower. Above here, the next levels are seen at 0.9165.”