USD/CHF: A test of the 2021 lows at 0.8757 is on the cards – Credit Suisse

USD/CHF has been capped below the 200-day average at 0.9083 as expected and economists at Credit Suisse look for a turn back lower from here.

Resistance is seen at 0.9083/9115

“We look for a turn back lower from 0.9083. Going forwards, a sustained move back below 0.9030 would confirm a near-term peak. Thereafter, the next levels are seen at 0.9000/8985, which stalled the market on Monday, then 0.8922/10, before 0.8871/62, which is an important price low.” 

“With weekly MACD crossing back below MACDA, we would not even rule out a test of the 2021 low at 0.8757.” 

“Resistance stays at the 200-day average at 0.9083/9115, which should now ideally cap to keep the risks directly lower. Above here, the next levels are seen at 0.9165.”