USD/CHF: Resistance at 0.9502 caps the correction higher – Credit Suisse

USD/CHF has moved into a short-term range, which analysts at Credit Suisse eventually expect to be resolved lower, as the pair is capped by the key resistance at 0.9502. Support is seen at 0.9425/20, then 0.9376.

Key quotes

“USD/CHF stayed capped once more at the key 13-day exponential average, currently at 0.9502 and we ideally look for a move lower from here. With this in mind, we see support initially at 0.9475, then 0.9441/33, ahead of .9425/20, where we might see an attempt to hold at first. Removal of here would then expose the current June low at 0.9376, beneath which would see the recently completed ‘hammer’ candlestick negated and we would then expect to see another leg lower.”

“Resistance moves to 0.9502/08, ahead of 0.9547/53, which ideally holds to keep the immediate downside bias intact. A close above here would see a minor base established to suggest further corrective upside, which ideally would be capped by 0.9632/51.”