USD/CHF: Support at 0.9214/12 to hold with resistance seen at 0.9324 – Credit Suisse

USD/CHF has been capped at key downtrend resistance at 0.9356/70. Nonetheless, analysts at Credit Suisse look for support at 0.9214/12 to hold further weakness.

The long-term risk stays seen higher

“USD/CHF strength has been capped at 0.9356/70 as the franc itself benefits from safe haven flows as equities extend their sharp fall. Although we expect equities to extend their fall our bias is still to view this as a temporary pullback here.”

“We look for trend and price support at 0.9214/12 to try and hold with resistance seen at 0.9281 initially, with a break above 0.9324 needed to clear the way for a retest of 0.9356/70. Beyond here would mark a significant break higher with little then seen in the way of meaningful resistance until the 0.9473 April high.” 

“Below 0.9214/12 would leave the market back in its prior range, with next support seen at the 55-day average at 0.9185 with more important but distant support seen at 0.9116/0.9099.”