USD/CHF continues to move lower suggesting further weakness – Credit Suisse
|USD/CHF deteriorated sharply on Tuesday, closing beneath the crucial “neckline” to the recent base, currently at 0.8934, and thus negating this base to sharply increase the risk of an early resumption of the core downtrend, the Credit Suisse analyst team informs.
Key quotes
“We shift our bias in favor of further weakness and a potential early resumption of the core downtrend. Support moves initially to the 55-day average at 0.8901, where we would expect to see a brief pause at first.”
“Removal of 0.8901 would open the door to 0.8896, ahead of a cluster of supports at 0.8874/70. Beyond here could subsequently expose the late January low at 0.8839, where we would expect to see another breather at first.”
“Resistance is seen initially at 0.8901, then 0.8991, removal of which would ease the recent downside pressure and see a move back to 0.9020 and 0.9046.”
“Removal of 0.9046 would instead suggest that the move lower was a temporary bounce, exposing the 61.8% retracement of the September 2020/January 2021 fall and the downtrend from early 2020 at 0.9075/90.”
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