USD/CHF remains in a clear downtrend with the market honing in on long-term supports at 0.9222 and then at the even more important 0.9188/83, which might remain a solid floor, according to analysts at Credit Suisse who see scope for further downside.
“As USD/CHF is now approaching the pivotal 38.2% retracement of the entire 2015/2017 surge at 0.9222 and as the daily RSI momentum is now in heavily oversold territory, we continue to stay alert for a potential near term consolidation.”
“Should the market see an immediate break below 0.9222, next pivotal support is seen at the 2018 and 2020 lows at 0.9188/83, where we expect the market to stall, as we expect this zone to remain a solid floor to keep the market in its broad, multi-year range.”
“Resistance is seen initially at 0.9252/65, which ideally caps to keep the immediate downside bias intact. Above here though can see a move back to 0.9288, with scope for 0.9302, where we would expect another attempt to cap.”