USD/CHF: Sharp move lower, support seen at 0.9393/85 – Credit Suisse

USD/CHF broke below the key support at 0.9503 low and the 61.8% retracement at 0.9457 reinforcing the downswing, according to economists at Credit Suisse. Next support awaits at 0.9393/85.

Key quotes 

“Although the daily RSI momentum is now approaching oversold territory, we expect the downmove to extend further. Support is seen initially at 0.9393/85, removal of which would see the 78.6% retracement at 0.9346/37 next, where we would expect to see fresh buyers at first for a fresh pause. Beneath here in due course could open the door to a move back to the current lows for the year at 0.9188/83, where we would expect to see a move concerted effort to hold.”

“Resistance moves initially to 0.9460/73, then 0.9503/15, which now ideally holds to keep the immediate downside bias intact. Above here on a closing basis would see a move back to 0.9586, ahead of 0.9650/51, above which complete a small base to reassert the rangebound environment.”