USD/CHF to see a deeper corrective recovery to 0.9296/0.9322 – Credit Suisse

The USD/CHF pair is breaking higher and further corrective upside is likely towards the 0.9296/0.9322 region, economists at Credit Suisse inform.

Key quotes

“We see resistance initially at 0.9195/0.9208 – the November high and the 38.2% retracement of the 2020 fall. Next resistance thereafter is seen at 0.9296/0.9322, which is the 38.2% retracement of the entire fall from 2019, where we now expect to see a more concerted effort to cap and ideally see a resumption of the core bear trend later in the year.”

“Post a deeper correction and possibly an extensive period of sideways ranging, we still eventually look for a resumption of weakness with support seen initially at 0.9046/27, below which would turn the risks back lower for a move to the current YTD low at 0.8758, removal of which would see 2014 low at 0.8699 exposed. Beyond here would see an eventual move to the 61.8% retracement at 0.8528.”