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The USD/CHF pair has broken the 55-day average at 0.9200/9185, which suggests scope for 0.9116/9094, then 0.9047/31, where analysts at Credit Suisse would look for a floor.

USD/CHF has closed below important support at 0.9200/9185, turning the short-term risk lower

“USD/CHF has closed below key support at 0.9200/9185, which is the 38.2% retracement of the Q1 upmove, an important psychological inflection point and the rising 55-day average. This suggests a much deeper move lower is beginning, with scope for the 50% retracement next at 0.9116, then the 200-day average at 0.9100/9094. Whilst we would look for an attempt to hold here, we note that the next support is seen at 0.9047/27, where we would have more confidence in a floor.”

“Bigger picture, trend following indicators such as moving averages maintain a bullish ‘golden cross’, with weekly MACD staying outright bullish.”  

“Our base case is that this is still a corrective move lower, with resistance seen initially at 0.9246, above which would confirm a small base for a reversal back higher, with the next initial level at 0.9282/89.”