USD/CHF pushed higher on Wednesday, but remains capped below first resistance at 0.8998/9003, as well as more important resistance at 0.9049/77. Analysts at Credit Suisse are still biased directly lower for a move to 0.8910 next.
Resistance is seen at the 0.9053/77 region
“We maintain our downside bias following the recent break below the 200-day average, which suggested the medium term downtrend was resuming. With this in mind, we look for a renewed turn back lower, with next support seen at .8922/10, which is the 78.6% retracement of the Q1 recovery, before .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. As above, the 200-day average at 0.9077 should ideally continue to cap. Above would instead complete a base to turn the risks higher.”
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