USD/CHF: Close below 0.9056/51 to confirm the downtrend is resuming – Credit Suisse

USD/CHF has moved sharply lower over the past couple of sessions, breaking below the range lows at 0.9056/51 in early trading this morning, with the next major supports at 0.9000, before 0.8875, economists at Credit Suisse apprise.

Key quotes

“USD/CHF has broken through its 0.9056/51 recent lows to move decisively below the 0.9072 2015 low. Whilst short-term momentum is so far failing to confirm the break, our core outlook stays bearish following the completion of a major top, with a close below here confirming the end of the recent consolidation phase for a resumption of the downtrend, with support seen next at a major psychological inflection point at 0.9000, before the next major Fibonacci retracement level at 0.8875.” 

“Resistance is seen initially at 0.9121/24, above which would quickly suggest a false break lower. Next resistance is seen at 0.9189/98, before the more important range top at 0.9241/59. Only above this latter area would warn of an important base to suggest a deeper corrective move higher.”