USD/CHF has pushed towards the bottom of its near term range and towards key support at 0.9116/9087, which includes the 200-day average. Economists at Credit Suisse are watching carefully for signs of a floor above the mentioned area, with a move above 0.9196/9200 confirming it.
USD/CHF is now approaching a cluster of more important supports
“Given that we still view the April move lower as corrective, we are on alert from signs of rejection from the 50% retracement next at 0.9116, then the 200-day average at 0.9100/9087. Whilst we are highly alert to a potential floor at these supports, we note that the next support is seen at the uptrend from the 2021 low at 0.9063, where we would have even 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. With this in mind, our base case is that this is still a corrective move lower as above, with a move back above the 55-day average at 0.9196/9200 needed to confirm a floor, with the next resistance at 0.9246.”
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