The USD/CHF pair continues to trend lower and although short-term momentum is a slight concern, economists at Credit Suisse stay bearish, The next support is seen at 0.8910.
USD/CHF has made another new low
“USD/CHF has continued its downtrend and made another new low, although a minor RSI divergence is still in place. Despite this, we maintain our downside bias following the recent break below the 200-day average, which suggested the medium-term downtrend was resuming.”
“Next support is seen at 0.8922/10, which is the 78.6% retracement of the Q1 recovery, 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, following the recent cross into outright bearish territory for weekly MACD, with daily MACD also remaining outright bearish, albeit worryingly curling higher.”
“Near-term resistance is seen at 0.9049/53. The 200-day average at 0.9078 should ideally continue to cap. Above would instead complete a base to turn the risks higher.”
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