USD/CHF to move back lower towards 0.9425 – Credit Suisse

USD/CHF is now in a short-term consolidation phase,trading just above the 0.95 level, after the 13-day exponential average at 0.9539 capped the corrective pullback and analysts at Credit Suisse expect a move lower to face initial support at 0.9456.

Key quotes

“USD/CHF remains capped by the 13-day exponential average, currently at 0.9539, although the market has moved into a near-term consolidation phase for now.”

“We ideally look for weakness to extend further and see support initially at 0.9456, ahead of 0.9425/24, where we might see an attempt to hold at first. Removal of here would then expose the current June low at 0.9376, beneath which would see the recently completed ‘hammer’ candlestick negated and we would then expect to see another leg lower. Support is seen thereafter at 78.6% retracement of the March 2020 surge at 0.9337/21, where we also could see fresh buyers at first. Below here though could see the current low for the year at 0.9183 exposed.”

“Resistance moves to 0.9523, then 0.9547/53, which ideally holds to keep the immediate downside bias intact. A close above here would see a minor base established to suggest further corrective upside, which then would be ideally capped by 0.9650/51.”