USD/CHF to see a deeper move higher over the next couple of months – Credit Suisse

USD/CHF is still likely to see a deeper move higher over the next couple of months. But unless the broader USD bases out, this will still be viewed as a move higher within a broader range, according to economists at Credit Suisse.

Break below 0.9142/33 to trigger a correction back to 0.9081/55

“We stay biased towards a direct move to the confirmed downtrend at 0.9417/73, which remains a key medium-term inflection point.” 

“Longer term, the market is repeatedly breaking below flat averages and weekly MACD is oscillating around zero, signaling that the market is clearly in a broad range bound phase for now. If the broader USD bases out though, we would expect a trending phase and break above 0.9417/73 and would resultantly raise our core objective up to 0.9672.”

“A break below 0.9142/33 would trigger a short-term correction back to 0.9081/55. Only below here would remove the near-term upside risks, with next support back 0.8925.”