USD/CHF: Failure at the downtrend suggests a new higher level range – Credit Suisse

USD/CHF has quickly reversed lower after failing ahead of key resistance at 0.9356/77. The pair is likely to shift into a new higher-level range for now, in the view of analysts at Credit Suisse.

Next support is seen at 0.9208

“USD/CHF has been capped just ahead of the important downtrend from the 2019 high and retracement resistance at 0.9356/77. This suggests a new higher level range is likely to develop, with 0.9356/77 likely to prove a tough barrier and define the top of this range unless the USD completes a larger base, with little in the way of meaningful resistance if a breakout above here is seen until the 0.9473 high.” 

“Next support is seen at 0.9208, which we now look to hold for a reversal back higher and to define the bottom end of the new higher level range.”

“Below 0.9208 would leave the market back in its prior range, with next support at 0.9166/63.”