USD/CHF: Further near-term weakness is likely, next significant support seen at 0.9775 – Credit Suisse

USD/CHF has broken below 0.9876, suggesting that further near-term decline towards the 55-Day Moving Average at 0.9775 is likely, analysts at Credit Suisse report.

Break below 0.9876 shifts the near-term risk lower

“USD/CHF has managed to break below 0.9876. This signals that further near-term weakness is likely to follow. With near-term MACD also reinforcing this bearish signal, we look for a fall to 0.9838/30 initially and then likely for a test of the 55-DMA at 0.9775.” 

“Should a solid break below the 55-DMA also follow, this would suggest yet another stronger move lower within the broader mean-reverting environment seen since April, though with tougher support next seen at the potential uptrend from August and the 200-DMA at 0.9627/9585.” 

“Resistance is seen at the 13-DMA at 0.9930/38 and next at yesterday’s high at 0.9963, which we look to ideally maintain any sudden move higher to keep the current downside intact.”