USD/CHF is testing below the lower end of the tight range and below the crucial 0.8875 long-term retracement support. Although economists at Credit Suisse stay medium-term bearish, the bank’s analyst team stays biased towards further range trading in the short-term.
Key quotes
“USD/CHF is seeing another attempt to break out of its tight range to the downside after breaking below 0.8950 this morning. Despite the early test below this level, we remain biased for now for further near-term sideways trading, with the Fed tonight a potential catalyst for a near-term reversal back into the range.”
“We remain biased lower over the medium-term and look for a clear and sustained move lower, with support seen initially at price support and key psychological inflection point at 0.8802/00, where we would expect to see another attempt to hold at first. Beyond here though could see a move back to 0.8765/62.”
“Resistance is seen initially at 0.8862, then 0.8881/88, before 0.8909/15, which ideally continues to cap any correction higher. Beyond here though we see 0.8947/54 next, removal of which would see a move back to 0.8983/84, where we expect to see another attempt to cap if reached.”
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