USD/CHF broke sharply lower again yesterday, with the market prodding below the pivotal 0.9376 June low in early trading today. A close this level would confirm an important range breakout with next key support at 0.9337, per Credit Suisse.
Key quotes
“We ideally look for a close below the 0.9376 level, although we are wary of a reversal given its importance. Removal of here on a closing basis though would see the recently completed ‘hammer’ candlestick negated and confirm a range breakdown, with support then seen at the 78.6% retracement of the June spike at 0.9337, where fresh buyers are expected at first. Below here though would then see support next at 0.9321, ahead of a move back to the 38.2% retracement of the 2015/2016 upswing at 0.9222, which may prove a strong barrier at first.”
“Resistance is seen initially at 0.9388/92, which now ideally holds to keep the immediate downside bias intact. Above here would see resistance next at 0.9453/59 and then at 0.9494, removal of which would suggest a deeper correction higher within the range, with resistance seen thereafter at 0.9531/33.”
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