USD/CHF: Support from the 55-DMA at 0.9131 to hold the sharp pullback – Credit Suisse

The USD/CHF pair has seen a sharp setback in line with the broader “risk off” tone. Economists at Credit Suisse see scope for a deeper setback to the 55-day moving average at 0.9131.

Resistance seen at 0.9202, then 0.9240/43

“We see scope for a deeper setback to test the rising 55-day average and 50% retracement of the August rally at .9131, but with this then ideally holding.”

“A close below 0.9131 though would reassert a broader sideways range again with support seen next at the 200-day average at 0.9077/68.”

“Resistance is seen at 0.9181 initially, then 0.9202, above which is needed to reassert an upward bias for strength back to last week’s highs at 0.9240/43.” 

“Beyond the 0.9240/43 area can rekindle thoughts of a more sustainable rally for a test of the July highs and the 61.8% retracement of the April/June fall at 0.9264/75.”